[Title 19 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2005 Edition]
[From the U.S. Government Printing Office]



[[Page i]]



          19


          Parts 141 to 199

                         Revised as of April 1, 2005


          Customs Duties
          
          


________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of April 1, 2005
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 19:
          Chapter I--Bureau of Customs and Border Protection, 
          Department of Homeland Security; Department of the 
          Treasury (Continued)                                       3
  Finding Aids:
      Table of CFR Titles and Chapters........................     643
      Alphabetical List of Agencies Appearing in the CFR......     661
      Chapter I Subject Index.................................     671
      List of CFR Sections Affected...........................     767

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                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 19 CFR 141.0 refers 
                       to title 19, part 141, 
                       section 0.

                     ----------------------------

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
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[[Page vi]]

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                          Office of the Federal Register.

April 1, 2005.

[[Page ix]]



                               THIS TITLE

    Title 19--Customs Duties is composed of three volumes. The first two 
volumes, parts 0 to 140 and parts 141 to 199 contain the regulations in 
Chapter I--Bureau of Customs and Border Protection, Department of 
Homeland Security; Department of the Treasury. The third volume, part 
200 to end, contains the regulations in Chapter II--United States 
International Trade Commission; Chapter III--International Trade 
Administration, Department of Commerce; and Chapter IV--Bureau of 
Immigration and Customs Enforcement, Department of Homeland Security. 
The contents of these volumes represent all current regulations issued 
under this title of the CFR as of April 1, 2005.

    A Subject Index to Chapter I--Bureau of Customs and Border 
Protection, Department of Homeland Security; Department of the Treasury 
appears in the Finding Aids section of the first two volumes.

    For this volume, Cheryl E. Sirofchuck was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page 1]]



                        TITLE 19--CUSTOMS DUTIES




                  (This book contains parts 141 to 199)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Bureau of Customs and Border Protection, 
  Department of Homeland Security; Department of the 
  Treasury (continued)......................................         141

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   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 
        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter I appear by T.D. 95-
78, 60 FR 50021, Sept. 27, 1995.
Part                                                                Page
141             Entry of merchandise........................           5
142             Entry process...............................          43
143             Special entry procedures....................          58
144             Warehouse and rewarehouse entries and 
                    withdrawals.............................          68
145             Mail importations...........................          80
146             Foreign trade zones.........................          93
147             Trade fairs.................................         129
148             Personal declarations and exemptions........         134
151             Examination, sampling, and testing of 
                    merchandise.............................         168
152             Classification and appraisement of 
                    merchandise.............................         200
158             Relief from duties on merchandise lost, 
                    damaged, abandoned, or exported.........         217
159             Liquidation of duties.......................         225
161             General enforcement provisions..............         242
162             Inspection, search, and seizure.............         243
163             Recordkeeping...............................         270
171             Fines, penalties, and forfeitures...........         286
172             Claims for liquidated damages; penalties 
                    secured by bonds........................         315
173             Administrative review in general............         318
174             Protests....................................         320
175             Petitions by domestic interested parties....         328
176             Proceedings in the Court of International 
                    Trade...................................         331
177             Administrative rulings......................         333
178             Approval of information collection 
                    requirements............................         351
181             North American Free Trade Agreement.........         354
191             Drawback....................................         519

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192             Export control..............................         632
193--199        [Reserved]

[[Page 5]]



PART 141_ENTRY OF MERCHANDISE--Table of Contents




Sec.
141.0 Scope.
141.0a Definitions.

   Subpart A_Liability for Duties and Requirement To Enter Merchandise

141.1 Liability of importer for duties.
141.2 Liability for duties on reimportation.
141.3 Liability for duties includes liability for taxes.
141.4 Entry required.
141.5 Time limit for entry.

         Subpart B_Right to Make Entry and Declarations on Entry

141.11 Evidence of right to make entry for importations by common 
          carrier.
141.12 Right to make entry of importations by other than common carrier.
141.13 Right to make entry of abandoned or salvaged merchandise.
141.14 Deceased or insolvent consignees and court-appointed 
          administrators.
141.15 Bond for production of bill of lading or air waybill.
141.16 Disposition of documents.
141.17 Entry by nonresident consignee.
141.18 Entry by nonresident corporation.
141.19 Declaration of entry.
141.20 Actual owner's declaration and superseding bond of actual owner.

                      Subpart C_Powers of Attorney

141.31 General requirements and definitions.
141.32 Form for power of attorney.
141.33 Alternative form for noncommercial shipment.
141.34 Duration of power of attorney.
141.35 Revocation of power of attorney.
141.36 Nonresident principals in general.
141.37 Additional requirements for non-resident corporations.
141.38 Resident corporations.
141.39 Partnerships.
141.40 Trusteeships.
141.41 Surety on Customs bonds.
141.42 Protests.
141.43 Delegation to subagents.
141.44 Designation of Customs ports in which power of attorney is valid.
141.45 Certified copies of power of attorney.
141.46 Power of attorney retained by customhouse broker.

      Subpart D_Quantity of Merchandise To Be Included In an Entry

141.51 Quantity usually required to be in one entry.
141.52 Separate entries for different portions.
141.53 Procedure for separate entries.
141.54 Separate entries for consolidated shipments.
141.55 Single entry summary for shipments arriving under one 
          transportation entry.
141.56 Single entry summary for multiple transportation entries 
          consigned to the same consignee.
141.57 Single entry for split shipments.

                 Subpart E_Presentation of Entry Papers

141.61 Completion of entry and entry summary documentation.
141.62 Place and time of filing.
141.63 Submission of entry summary documentation for preliminary review.
141.64 Review and correction of entry and entry summary documentation.
141.65 [Reserved]
141.66 Bond for missing documents.
141.67 Recall of documentation.
141.68 Time of entry.
141.69 Applicable rates of duty.

                           Subpart F_Invoices

141.81 Invoice for each shipment.
141.82 Invoice for installment shipments arriving within a period of 10 
          days.
141.83 Type of invoice required.
141.84 Photocopies of invoice for separate entries of same shipment.
141.85 Pro forma invoice.
141.86 Contents of invoices and general requirements.
141.87 Breakdown on component materials.
141.88 Computed value.
141.89 Additional information for certain classes of merchandise.
141.90 Notation of tariff classification and value on invoice.
141.91 Entry without required invoice.
141.92 Waiver of invoice requirements.

                  Subpart G_Deposit of Estimated Duties

141.101 Time of deposit.
141.102 When deposit of estimated duties, estimated taxes, or both not 
          required.
141.103 Amount to be deposited.
141.104 Computation of duties.
141.105 Voluntary deposit of additional duties.

                    Subpart H_Release of Merchandise

141.111 Carrier's release order.
141.112 Liens for freight, charges, or contribution in general average.
141.113 Recall of merchandise released from Customs custody.

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.
    Subpart F also issued under 19 U.S.C. 1481;
    Subpart G also issued under 19 U.S.C. 1505;
    Section 141.1 also issued under 11 U.S.C. 507(a)(7)(F), 31 U.S.C. 
191, 192;

[[Page 6]]

    Section 141.4 also issued under 19 U.S.C 1202 (General Note 19; 
Chapter 86, Additional U.S. Note 1; Chapter 89, Additional U.S. Note 1; 
Chapter 98, Subchapter III, U.S. Notes 3 and 4; Harmonized Tariff 
Schedule of the United States), 1498;
    Section 141.19 also issued under 19 U.S.C. 1485, 1486;
    Section 141.20 also issued under 19 U.S.C. 1485, 1623;
    Section 141.66 also issued under 19 U.S.C. 1490, 1623;
    Section 141.68 also issued under 19 U.S.C. 1315;
    Section 141.69 also issued under 19 U.S.C. 1315;
    Section 141.88 also issued under 19 U.S.C. 1401a(d), 1402(f);
    Section 141.90 also issued under 19 U.S.C. 1487;
    Section 141.112 also issued under 19 U.S.C. 1564;
    Section 141.113 also issued under 19 U.S.C. 1499, 1623.

    Source: T.D. 73-175, 38 FR 17447, July 2, 1973, unless otherwise 
noted.



Sec. 141.0  Scope.

    This part sets forth general requirements and procedures for the 
entry of imported merchandise, except entries under carnet, and entries 
for transportation in bond or exportation, for foreign-trade zones, or 
for trade fairs, which are covered in parts 114, 18, 146, and 147 of 
this chapter. More specific requirements and procedures in addition to 
those in this part are set forth in parts 143, 144, and 145 of this 
chapter for consumption, appraisement and informal entries, for 
warehouse entries, and for mail entries.



Sec. 141.0a  Definitions.

    Unless the context requires otherwise or a different definition is 
prescribed, the following terms shall have the meanings indicated when 
used in connection with the entry of merchandise:
    (a) Entry. ``Entry'' means that documentation required by Sec. 
142.3 of this chapter to be filed with the appropriate Customs officer 
to secure the release of imported merchandise from Customs custody, or 
the act of filing that documentation. ``Entry'' also means that 
documentation required by Sec. 181.53 of this chapter to be filed with 
Customs to withdraw merchandise from a duty-deferral program in the 
United States for exportation to Canada or Mexico or for entry into a 
duty-deferral program in Canada or Mexico.
    (b) Entry summary. ``Entry summary'' means any other documentation 
necessary to enable Customs to assess duties, and collect statistics on 
imported merchandise, and determine whether other requirements of law or 
regulation are met.
    (c) Submission. ``Submission'' means the voluntary delivery to the 
appropriate Customs officer of the entry summary documentation for 
preliminary review or of entry documentation for other purposes.
    (d) Filing. ``Filing'' means:
    (1) The delivery to Customs of the entry documentation required by 
section 484(a), Tariff Act of 1930, as amended (19 U.S.C. 1484(a)), to 
obtain the release of merchandise, or
    (2) The delivery to Customs, together with the deposit of estimated 
duties, of the entry summary documentation required to assess duties, 
collect statistics, and determine whether other requirements of law and 
regulation are met, or
    (3) The delivery to Customs, together with the deposit of estimated 
duties, of the entry summary documentation which shall serve as both the 
entry and the entry summary.
    (e) Presentation. ``Presentation'' is used only in connection with 
quota-class merchandise and is defined in Sec. 132.1(d) of this 
chapter.
    (f) Entered for consumption. ``Entered for consumption'' means that 
an entry summary for consumption has been filed with Customs in proper 
form, with estimated duties attached. ``Entered for consumption'' also 
means the necessary documentation has been filed with Customs to 
withdraw merchandise from a duty-deferral program in the United States 
for exportation to Canada or Mexico or for entry into a duty-deferral 
program in Canada or Mexico (see Sec. 181.53 of this chapter).
    (g) Entered for warehouse. ``Entered for warehouse'' means that an 
entry summary for warehouse has been filed with Customs in proper form.
    (h) Entered temporarily under bond. ``Entered temporarily under 
bond'' means that an entry summary supporting a temporary importation 
under

[[Page 7]]

bond has been filed with Customs in proper form.
    (i) Released conditionally. ``Released conditionally'' means any 
release from Customs custody before liquidation.

[T.D. 79-221, 44 FR 46816, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984; T.D. 96-14, 61 FR 2911, Jan. 30, 1996]



   Subpart A_Liability for Duties and Requirement To Enter Merchandise



Sec. 141.1  Liability of importer for duties.

    (a) Time duties accrue. Duties and the liability for their payment 
accrue upon imported merchandise on arrival of the importing vessel 
within a Customs port with the intent then and there to unlade, or at 
the time of arrival within the Customs territory of the United States if 
the merchandise arrives otherwise than by vessel, unless otherwise 
specially provided for by law.
    (b) Payment of duties--(1) Personal debt of importer. The liability 
for duties, both regular and additional, attaching on importation, 
constitutes a personal debt due from the importer to the United States 
which can be discharged only by payment in full of all duties legally 
accruing, unless relieved by law or regulation. Payment to a broker 
covering duties does not relieve the importer of liability if the duties 
are not paid by the broker. The liability may be enforced 
notwithstanding the fact that an erroneous construction of law or 
regulation may have enabled the importer to pass his goods through the 
customhouse without payment. Delivery of a Customs bond with an entry is 
solely to protect the revenue of the United States and does not relieve 
the importer of liabilities incurred from the importation of merchandise 
into the United States.
    (2) Means of payment. An importer or his agent may pay Customs by 
using any of the applicable means provided in Sec. 24.1(a).
    (3) Methods of payment. An importer may pay duties either:
    (i) Directly to Customs whether or not a licensed customhouse broker 
is used; or
    (ii) Through a licensed customhouse broker. When an importer uses a 
broker and elects to pay by check or bank draft, the importer may issue 
the broker either:
    (A) One check or bank draft payable to the broker covering both 
duties and the broker's fees and charges, in which case the broker shall 
pay the duties to Customs on behalf of the importer, or
    (B) Separate checks or bank drafts, one covering duties payable to 
the ``U.S. Customs Service,'' for transmittal by the broker to Customs, 
and the other covering the broker's fees and charges. The importer's 
check or bank draft for duties shall be delivered to Customs by the 
broker.
    (c) Claim against estate of importer. The claim of the Government 
for unpaid duties against the estate of a deceased or insolvent importer 
has priority over obligations to creditors other than the United States. 
To the extent that a broker or a surety pays duties on behalf of an 
importer which files for bankruptcy protection, the broker or surety 
shall be entitled to assume the priority status of Customs under section 
507(a)(7) of the Bankruptcy Code for that portion of Customs claim which 
the surety or broker has paid.
    (d) Lien against merchandise. The liability for duties also 
constitutes a lien upon the merchandise imported which may be enforced 
while such merchandise is in the custody or subject to the control of 
the United States.
    (e) States and their instrumentalities. Neither the States nor their 
instrumentalities are entitled to any constitutional exemption from the 
payment of Customs duties.
    (f) Unordered merchandise. There shall be no liability for the 
payment of duties on the part of anyone to whom merchandise is consigned 
without his authority, if he refuses it. Such merchandise shall be 
treated as unclaimed (see part 27 of this chapter).

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 82-134, 47 
FR 32419, July 27, 1982; T.D. 92-58, 57 FR 27160, June 18, 1992; T.D. 
97-82, 62 FR 51770, Oct. 3, 1997]



Sec. 141.2  Liability for duties on reimportation.

    Dutiable merchandise imported and afterwards exported, even though 
duty thereon may have been paid on the

[[Page 8]]

first importation, is liable to duty on every subsequent importation 
into the Customs territory of the United States, but this does not apply 
to the following:
    (a) Personal and household effects taken abroad by a resident of the 
United States and brought back on his return to this country (see Sec. 
148.31 of this chapter);
    (b) Professional books, implements, instruments, and tools of trade, 
occupation, or employment taken abroad by an individual and brought back 
on his return to this country (see Sec. 148.53 of this chapter);
    (c) Automobiles and other vehicles taken abroad for noncommercial 
use (see Sec. 148.32 of this chapter);
    (d) Metal boxes, casks, barrels, carboys, bags, quicksilver flasks 
or bottles, metal drums, or other substantial outer containers exported 
from the United States empty and returned as usual containers or 
coverings of merchandise, or exported filled with products of the United 
States and returned empty or as the usual containers or coverings of 
merchandise (see Sec. 10.7(b), (c), (d), and (e) of this chapter);
    (e) Articles exported from the United States for repairs or 
alterations, which may be returned upon the payment of duty on the value 
of repairs or alterations at the rate or rates which would otherwise 
apply to the articles in their repaired or altered conditions (see Sec. 
10.8 of this chapter);
    (f) Articles exported for exhibition under certain conditions (see 
Sec. Sec. 10.66 and 10.67 of this chapter);
    (g) Domestic animals taken abroad for temporary pasturage purposes 
and returned within 8 months (see Sec. 10.74 of this chapter);
    (h) Articles exported under lease to a foreign manufacturer (see 
Sec. 10.108 of this chapter); or
    (i) Any other reimported articles for which free entry is 
specifically provided.



Sec. 141.3  Liability for duties includes liability for taxes.

    The importer's liability for duties includes a liability for any 
internal revenue taxes which attach upon the importation of merchandise, 
unless otherwise provided by law or regulation.



Sec. 141.4  Entry required.

    (a) General. All merchandise imported into the United States is 
required to be entered, unless specifically excepted.
    (b) Exceptions. The following are the exceptions to the general 
rule:
    (1) The exemptions listed in General Note 19 to the Harmonized 
Tariff Schedule of the United States (HTSUS).
    (2) Vessels (not including vessels classified in headings 8903 and 
8907 and subheadings 8905.90.10 and 8906.00.10 or in Chapter 98, HTSUS, 
such as under subheadings 9804.00.35 or 9813.00.35). See also Chapter 
89, Additional U.S. Note 1, HTSUS.
    (3) Instruments of international traffic described in Sec. 10.41a 
and Sec. 10.41b(b) of this chapter, under the conditions provided for 
in those sections. See also Chapter 98, Subpart III, U.S. Notes 3 and 4, 
HTSUS.
    (4) Railway locomotives classified in heading 8601 or 8602, HTSUS, 
and freight cars classified in heading 8606, HTSUS, on which no duty is 
owed (see paragraph (d) of this section). See Chapter 86, Additional 
U.S. Note 1, HTSUS; see also 19 CFR part 123 for reporting requirements 
for railway equipment brought into the United States from Canada or 
Mexico.
    (c) Undeliverable articles. The exemption from entry for 
undeliverable articles under General Note 19(e), HTSUS, is subject to 
the following conditions:
    (1) The person claiming the exemption must submit a certification 
(documentary or electronic) that:
    (i) The merchandise was intended to be exported to a foreign 
country;
    (ii) The merchandise is being returned within 45 days of departure 
from the United States;
    (iii) The merchandise did not leave the custody of the carrier or 
foreign customs;
    (iv) The merchandise is being returned to the United States because 
it was undeliverable to the foreign consignee; and
    (v) The merchandise was not sent abroad to receive benefit from, or 
fulfill obligations to, the United States as a result of exportation.

[[Page 9]]

    (2) Upon request by Customs, the person claiming the exemption shall 
provide evidence required to support the claim for exemption.
    (d) Railway locomotives and freight cars. For railway locomotives 
and freight cars described in Additional U.S. Note 1 of Chapter 86, 
HTSUS, to be excepted and released in accordance with paragraph (b)(4) 
of this section, the importer must first file a bond on CBP Form 301, 
containing the bond conditions set forth in either Sec. 113.62 or 
113.64 of this chapter.
    (e) Informal entry. Merchandise qualifying for informal entry by 
regulation, pursuant to 19 U.S.C. 1498, is exempt from formal entry 
under 19 U.S.C. 1484 and this part, but must be entered as required 
under applicable regulations (see part 143, subpart C, and Sec. Sec. 
10.151 through 10.153, 128.24, 145.31, 145.32, 148.12, 148.13, 148.51, 
and 148.62 of this chapter).

[T.D. 94-51, 59 FR 30295, June 13, 1994; T.D. 95-29, 60 FR 18348, Apr. 
11, 1995; 60 FR 21043, May 1, 1995; T.D. 97-82, 62 FR 51770, Oct. 3, 
1997; T.D. 00-81, 65 FR 68887, Nov. 15, 2000; T.D. 02-14, 67 FR 15098, 
Mar. 29, 2002; T.D. 02-28, 67 FR 36097, May 23, 2002; CBP Dec. 04-28, 69 
FR 52600, Aug. 27, 2004]



Sec. 141.5  Time limit for entry.

    Merchandise for which entry is required will be entered within 15 
calendar days after landing from a vessel, aircraft or vehicle, or after 
arrival at the port of destination in the case of merchandise 
transported in bond. Merchandise for which timely entry is not made will 
be treated in accordance with Sec. 4.37 or Sec. 122.50 or Sec. 123.10 
of this chapter.

[T.D. 02-65, 67 FR 68035, Nov. 8, 2002]



         Subpart B_Right to Make Entry and Declarations on Entry



Sec. 141.11  Evidence of right to make entry for importations by 
common carrier.

    (a) Merchandise not released directly to carrier. Except where 
merchandise is released directly to the carrier in accordance with 
paragraph (b) of this section, one of the following types of evidence of 
the right to make entry shall be filed in connection with the entry of 
merchandise imported by common carrier:
    (1) A bill of lading or air waybill, presented by the holder 
thereof, properly endorsed when endorsement is required under the law. A 
nonnegotiable bill of lading, or air waybill, may not be endorsed by the 
named consignee to give someone else the right to make entry. If the 
person making entry intends to use the original bill of lading or air 
waybill to obtain a duplicate bill of lading, duplicate air waybill, or 
carrier's certificate from the carrier, the exchange shall be made 
before the entry is filed, and the duplicate bill of lading, duplicate 
air waybill, or carrier's certificate shall be used to make entry in 
accordance with paragraph (a) (3) or (4) of this section. For purposes 
of this part, the rights of the consignor relating to an air waybill as 
prescribed by the Warsaw Convention (49 Stat. 3017) shall be protected.
    (2) An extract from a bill of lading or air waybill certified to be 
genuine by the carrier bringing the merchandise to the port of entry. 
Customs officers shall not certify extracts from bills of lading or air 
waybills.
    (3) A certified duplicate bill of lading or air waybill, with the 
carrier's certificate being in substantially the following form:

           Duplicate Bill Of Lading or Air Waybill Certificate

                                                        ----------, 19--
    The undersigned carrier, bringing the within-described merchandise 
to this port, hereby certifies that this signed copy of the bill of 
lading or air waybill is genuine and may be used for the purpose of 
making Customs entry as provided for in section 484(i), Tariff Act of 
1930.
________________________________________________________________________
                                                       (Name of carrier)
________________________________________________________________________
                                                                 (Agent)

    (4) A carrier's certificate, which may be executed on the official 
entry form, or, in appropriate cases, by means of a rubber-stamped or 
typewritten combined carrier's certificate and release order with one 
signature on a copy of the bill of lading, airway bill, shipping 
receipt, or other comparable document. The rubber-stamped or typewritten 
certificate shall be in substantially the following form, which may be 
varied to

[[Page 10]]

include any of the qualifications on release shown in Sec. 141.111(d):

                                                       Date ------------
    The undersigned carrier, to whom or upon whose order the articles 
described herein or in the attached document must be released, hereby 
certifies that the consignee named in this document is the owner or 
consignee of such articles within the purview of section 484(h), Tariff 
Act of 1930. In accordance with the provisions of section 484(j), Tariff 
Act of 1930, authority is hereby given to release the articles covered 
by the aforementioned statement to such consignee.

________________________________________________________________________
                                                       (Name of carrier)
________________________________________________________________________
                                                                 (Agent)

    (5) A blanket carrier's release order on an appropriately modified 
bill of lading or air waybill covering any or all shipments which will 
arrive at the port on the carrier's conveyance during the period 
specified in the release order.
    (6) A shipping receipt or other document presented in lieu of a bill 
of lading or air waybill shall be accepted as authority for making entry 
only if it bears a carrier's certificate in accordance with paragraph 
(a)(4) of this section, or if entry is made by the actual consignee in 
person or in his name by a duly authorized agent.
    (b) Merchandise released directly to carrier. Where, in accordance 
with subsection (j) of section 484, Tariff Act of 1930, as amended (19 
U.S.C. 1484), merchandise is released from Customs custody (either under 
immediate delivery procedures in accordance with the provisions of 
subpart C of part 142 of this chapter, or after an entry has been filed 
in accordance with subpart A of part 142 of this chapter, or after an 
entry summary, which shall serve as both the entry and entry summary has 
been filed with estimated duties attached where appropriate in 
accordance with subpart B of part 142 of this chapter), to the carrier 
by whom the merchandise was brought to the port, the delivery of the 
merchandise by the carrier to the person filing the entry summary with 
estimated duties attached shall be deemed to be the certification 
required by subsection (h), section 484, Tariff Act of 1930. Customs 
responsibility under this optional entry procedure is limited to the 
collection of duties, and constitutes no representation whatsoever 
regarding the right of any person to obtain possession of the 
merchandise from the carrier. Consequently, no Customs official shall be 
liable to any person in respect to the delivery of merchandise released 
from Customs custody in accordance with the provisions of this 
paragraph.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49787, Oct. 25, 1978; T.D. 82-224, 47 FR 53727, Nov. 29, 1982; T.D. 
87-75, 52 FR 20068, May 29, 1987; T.D. 90-87, 55 FR 47052, Nov. 9, 1990; 
T.D. 97-82, 62 FR 51770, Oct. 3, 1997]



Sec. 141.12  Right to make entry of importations by other than common 
carrier.

    When merchandise is not imported by a common carrier, possession of 
the merchandise at the time of arrival in the United States shall be 
deemed sufficient evidence of the right to make entry.



Sec. 141.13  Right to make entry of abandoned or salvaged merchandise.

    Underwriters of abandoned merchandise or salvors of merchandise 
saved from a wreck who are unable to produce a bill of lading, air 
waybill, certified duplicate bill of lading or air waybill, or carrier's 
certificate, shall produce evidence satisfactory to the port director of 
their right to act.

[T.D. 78-394, 43 FR 49787, Oct. 25, 1978]



Sec. 141.14  Deceased or insolvent consignees and court-appointed 
administrators.

    The executor or administrator of the estate of a deceased consignee, 
the receiver or other legal representative of an insolvent consignee, or 
the representative appointed in any action or proceeding at law to act 
for a consignee shall not be permitted to make entry unless he produces 
a duly endorsed bill of lading or air waybill, a carrier's certificate, 
or a duplicate bill of lading or air waybill, executed in accordance 
with subsections (h) or (i) of section 484, Tariff Act of 1930, as 
amended (19 U.S.C. 1484), showing him to be the consignee for Customs 
purposes.

[T.D. 78-394, 43 FR 49787, Oct. 25, 1978]

[[Page 11]]



Sec. 141.15  Bond for production of bill of lading or air waybill.

    (a) When appropriate. If the person desiring to make entry is unable 
to present a bill of lading, air waybill, or other evidence of right to 
make entry in accordance with Sec. 141.11, the port director may accept 
a bond for the production of a bill of lading or air waybill under the 
provisions of section 484(c), Tariff Act of 1930, as amended (19 U.S.C. 
1484(c)). The bond shall be for the production of a bill of lading or 
air waybill, unless the person making entry intends to produce a 
carrier's certificate or certified duplicate bill of lading or air 
waybill. In that case, no bond is required because section 484(c) does 
not apply to entries made on a carrier's certificate or certified 
duplicate bill of lading or air waybill. If the port director is in 
doubt as to the propriety of accepting entry on a bond for the 
production of a bill of lading or air waybill, he shall request 
authority to do so from the Commissioner of Customs.
    (b) Form. The bond shall be on Customs Form 301 and contain the bond 
conditions set forth in Sec. 113.69 of this chapter.
    (c) Documents acceptable to satisfy bond. A bond given for the 
production of a bill of lading or air waybill shall be considered as 
canceled upon production of a bill of lading or air waybill, and may be 
considered as satisfied but shall not be canceled upon the production of 
a carrier's certificate or certified duplicate bill of lading or air 
waybill.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49788, Oct. 25, 1978; T.D. 84-213, 49 FR 41184, Oct. 19, 1984]



Sec. 141.16  Disposition of documents.

    (a) Bill of lading or air waybill. When the return of the bill of 
lading or air waybill to the person making entry is requested in 
accordance with section 484(j), Tariff Act of 1930, as amended (19 
U.S.C. 1484(j)), the port director shall obtain a receipt showing 
sufficient data from the bill of lading or air waybill to completely 
identify it and enable the auditor to verify the production of proper 
evidence of the right to make entry. The receipt shall also show any 
freight charges and weights that appear on the bill of lading or air 
waybill. The port director shall then return the bill of lading or air 
waybill to the person making entry with a notation thereon to the effect 
that entry has been made for the merchandise.
    (b) Other documents. When any of the other documents specified in 
Sec. 141.11(a) (2) through (6) is used in making entry, it shall be 
retained by the port director as evidence that the person making entry 
is authorized to do so.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49788, Oct. 25, 1978]



Sec. 141.17  Entry by nonresident consignee.

    A nonresident consignee has the right to make entry, but any bond 
taken in connection with the entry shall have a resident corporate 
surety or, when a carnet issued under part 114 of this chapter is used 
as an entry form, an approved resident guaranteeing association.



Sec. 141.18  Entry by nonresident corporation.

    A nonresident corporation (i.e., one which is not incorporated 
within the Customs territory of the United States or in the Virgin 
Islands of the United States) shall not enter merchandise for 
consumption unless it:
    (a) Has a resident agent in the State where the port of entry is 
located who is authorized to accept service of process against such 
corporation; and
    (b) Files a bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 113.62 of this chapter having a resident corporate 
surety to secure the payment of any increased and additional duties 
which may be found due.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984]



Sec. 141.19  Declaration of entry.

    (a) Declaration by consignee. The consignee in whose name an entry 
is made under the provisions of section 484, Tariff Act of 1930, as 
amended (19 U.S.C. 1484), shall execute the declaration specified in 
section 485(a), Tariff Act of 1930, as amended (19 U.S.C. 1485(a)) on:

[[Page 12]]

    (1) The entry summary for merchandise entered for consumption, for 
warehouse, or for temporary importation under bond, or
    (2) The rewarehouse or the bonded manufacturing warehouse entry.

The declaration need not be under oath. When the consignee is a 
partnership, any partner may execute the declaration, and when the 
consignee is a corporation any officer of the corporation may execute 
the declaration.
    (b) Declaration by agent of consignee--(1) Authorized agent with 
knowledge of the facts. When entry is made in a consignee's name by an 
agent who has knowledge of the facts and who is authorized under a 
proper power of attorney by that consignee to make declarations in 
accordance with section 485(f), Tariff Act of 1930, as amended (19 
U.S.C. 1485(f)), a declaration on the entry or entry summary executed by 
that agent is sufficient and no bond to produce a declaration of the 
consignee is required.
    (2) Other agents. When entry is made in a consignee's name by an 
agent who does not meet the qualifications in paragraph (b)(1) of this 
section either:
    (i) A declaration of the consignee on Customs Form 3347-A shall be 
filed with the entry documentation or entry summary or
    (ii) A charge for the production of the declaration shall be made 
against the bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter. No separate bond of the agent 
shall be required, since a charge against the bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this chapter 
satisfies the requirements of section 485(c), Tariff Act of 1930, as 
amended (19 U.S.C. 1485(c)).
    (3) Nominal consignee. A nominal consignee who makes entry in his 
own name is not considered an agent within the purview of section 
485(c), Tariff Act of 1930, as amended (19 U.S.C. 1485(c)), and he shall 
execute a declaration in accordance with paragraph (a) of this section.
    (c) Books, newspapers, and periodicals. In the case of successive 
importations of books, magazines, newspapers, and periodicals within the 
scope of section 485(b), Tariff Act of 1930, as amended (19 U.S.C. 
1485(b)), one declaration filed at the time of arrival of the first 
importation will be sufficient.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46816, June 4, 1979; T.D. 84-213, 49 FR 41184, Oct. 19, 1984]



Sec. 141.20  Actual owner's declaration and superseding bond of actual 
owner.

    (a) Filing--(1) Declaration of owner. A consignee in whose name an 
entry summary for consumption, warehouse, or temporary importation under 
bond is filed, or in whose name a rewarehouse entry or a manufacturing 
warehouse entry is made, and who desires, under the provisions of 
section 485(d), Tariff Act of 1930, as amended (19 U.S.C. 1485(d)), to 
be relieved from statutory liability for the payment of increased and 
additional duties shall declare at the time of the filing of the entry 
summary or entry documentation, as provided in Sec. 141.19(a), that he 
is not the actual owner of the merchandise, furnish the name and address 
of the owner, and file with the port director within 90 days from the 
time of entry (see Sec. 141.68) a declaration of the actual owner of 
the merchandise acknowledging that the actual owner will pay all 
additional and increased duties. The declaration of owner shall be filed 
on Customs Form 3347.
    (2) Bond of actual owner. If the consignee desires to be relieved 
from contractual liability for the payment of increased and additional 
duties voluntarily assumed by him under the single-entry bond which he 
filed in connection with the entry documentation and/or entry summary, 
or under his continuous bond against which the entry and/or entry 
summary is charged, he shall file a bond of the actual owner on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter, with the port director within 90 days from the time of 
entry.
    (b) Appropriate party to execute and file. Neither the declaration 
of the actual owner nor the bond of the actual owner shall be accepted 
unless executed by the actual owner or his duly authorized agent, and 
filed by the nominal consignee or his duly authorized agent.

[[Page 13]]

    (c) Nonresident actual owner. If the actual owner is a nonresident, 
the actual owner's declaration shall not be accepted as compliance with 
section 485(d), Tariff Act of 1930, as amended (19 U.S.C. 1485(d)), 
unless there is filed therewith the owner's bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this 
chapter, with a resident corporate surety.
    (d) Filing of declaration of owner for purposes other than relief 
from liability. Nothing in this section shall be construed to prevent 
the nominal consignee from filing the actual owner's declaration without 
the superseding bond for purposes other than relief from statutory 
liability for the payment of increased and additional duties under the 
provisions of section 485(d), Tariff Act of 1930, as amended (19 U.S.C. 
1485(d)).

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 74-212, 39 
FR 28420, Aug. 7, 1974; T.D. 79-221, 44 FR 46816, Aug. 9, 1979; T.D. 84-
213, 49 FR 41184, Oct. 19, 1984]



                      Subpart C_Powers of Attorney



Sec. 141.31  General requirements and definitions.

    (a) Limited or general power of attorney. A power of attorney may be 
executed for the transaction by an agent or attorney of a specified part 
or all the Customs business of the principal.
    (b) [Reserved]
    (c) Minor agents. A power of attorney to a minor shall not be 
accepted.
    (d) Definitions of resident and nonresident. For the purposes of 
this subpart, ``resident'' means an individual who resides within, or a 
partnership one or more of whose partners reside within, the Customs 
territory of the United States or the Virgin Islands of the United 
States, or a corporation incorporated in any jurisdiction within the 
Customs territory of the United States or in the Virgin Islands of the 
United States. A ``nonresident'' means an individual, partnership, or 
corporation not meeting the definition of ``resident.''

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-93, 49 FR 
17754, Apr. 25, 1984]



Sec. 141.32  Form for power of attorney.

    Customs Form 5291 may be used for giving power of attorney to 
transact Customs business. If a Customs power of attorney is not on a 
Customs Form 5291, it shall be either a general power of attorney with 
unlimited authority or a limited power of attorney as explicit in its 
terms and executed in the same manner as a Customs Form 5291. The 
following is an example of an acceptable general power of attorney with 
unlimited authority:

                  KNOW ALL MEN BY THESE PRESENTS, THAT

--------------------------------------------
 (Name of principal)
---------------------------------------- ,
(State legal designation, such as corporation, individual, etc.) 
residing at ------------------------------ and doing business under the 
laws of the State of ------------, hereby appoints______________________
________________________________________________________________________
    (Name, legal designation, and address)
as a true and lawful agent and attorney of the principal named above 
with full power and authority to do and perform every lawful act and 
thing the said agent and attorney may deem requisite and necessary to be 
done for and on behalf of the said principal without limitation of any 
kind as fully as said principal could do if present and acting, and 
hereby ratify and confirm all that said agent and attorney shall 
lawfully do or cause to be done by virtue of these presents until and 
including ------------, (date) or until notice of revocation in writing 
is duly given before that date.
    Date ------------, 19--;.
________________________________________________________________________
                                                 (Principal's signature)



Sec. 141.33  Alternative form for noncommercial shipment.

    An individual (but not a partnership, association, or corporation) 
who is not a regular importer may appoint another individual as his 
unpaid agent for Customs purposes by executing a power of attorney 
applicable to a single noncommercial shipment by writing, printing, or 
stamping on the invoice, or on a separate paper attached thereto, the 
following statement:

--------------------------; of
 (Name)
________________________________________________________________________
 (Address)

[[Page 14]]

is hereby authorized to execute, as an unpaid agent who has knowledge of 
the facts, pursuant to the provisions of section 485(f), Tariff Act of 
1930, as amended, the consignee's and owner's declarations provided for 
in section 485 (a) and (d), Tariff Act of 1930, as amended, and to enter 
on my behalf or for my account the goods described in the attached 
invoice which contains a true and complete statement of the facts 
concerning the shipment.
    Date ------------, 19--.
________________________________________________________________________
                                                 (Signature of importer)
________________________________________________________________________
                                                               (Address)



Sec. 141.34  Duration of power of attorney.

    Powers of attorney issued by a partnership shall be limited to a 
period not to exceed 2 years from the date of execution. All other 
powers of attorney may be granted for an unlimited period.

[T.D. 84-93, 49 FR 17754, Apr. 25, 1984]



Sec. 141.35  Revocation of power of attorney.

    Any power of attorney shall be subject to revocation at any time by 
written notice given to and received by the port director.



Sec. 141.36  Nonresident principals in general.

    A power of attorney executed by a nonresident principal shall not be 
accepted unless the agent designated thereby is a resident and is 
authorized to accept service of process against such nonresident.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-93, 49 FR 
17754, Apr. 25, 1984]



Sec. 141.37  Additional requirements for nonresident corporations.

    If a nonresident corporation has not qualified to conduct business 
under state law in the state in which Customs district the agent is 
empowered to perform the delegated authority, the power of attorney 
shall be supported by documentation establishing the authority of the 
grantor designated to execute the power of attorney on behalf of the 
corporation.

[T.D. 84-93, 49 FR 17754, Apr. 25, 1984]



Sec. 141.38  Resident corporations.

    A power of attorney shall not be required if the person signing 
Customs documents on behalf of a resident corporation is known to the 
port director to be the president, vice president, treasurer, or 
secretary of the corporation. When a power of attorney is required for a 
resident corporation, it shall be executed by a person duly authorized 
to do so.

[T.D. 84-93, 49 FR 17754, Apr. 25, 1984]



Sec. 141.39  Partnerships.

    (a)(1) General. A power of attorney granted by a partnership shall 
state the names of all members of the partnership. One member of the 
partnership may execute a power of attorney in the name of the 
partnership for the transaction of all its Customs business.
    (2) Limited partnership. A power of attorney granted by a limited 
partnership need only state the names of the general partners who have 
authority to bind the firm unless the partnership agreement provides 
otherwise. A copy of the partnership agreement must accompany the power 
of attorney. For this purpose, a partnership or limited partnership 
means any business association recognized as such under the laws of the 
state where the association is organized.
    (b) Change in partners. When a new firm is formed by a change in 
membership, no power of attorney filed by the antecedent firm shall 
thereafter be recognized for any Customs purpose.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 86-204, 51 
FR 42999, Nov. 28, 1986]



Sec. 141.40  Trusteeships.

    A trustee may execute a power of attorney for the transaction of 
Customs business incident to the trusteeship.



Sec. 141.41  Surety on Customs bonds.

    Powers of attorney to sign as surety on Customs bonds are subject to 
the requirements set forth in part 113 of this chapter.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 74-227, 39 
FR 32023, Sept. 4, 1974]

[[Page 15]]



Sec. 141.42  Protests.

    Powers of attorney to file protests are subject to the requirements 
set forth in Sec. 174.3 of this chapter.



Sec. 141.43  Delegation to subagents.

    (a) Resident principals. Except as otherwise provided for in 
paragraph (c) of this section, the holder of a power of attorney for a 
resident principal cannot appoint a subagent except for the purpose of 
executing shippers' export declarations. A subagent so appointed cannot 
delegate his power.
    (b) Nonresident principals. Except as otherwise provided for in 
paragraph (c) of this section, an agent who has power of attorney for a 
nonresident principal may execute a power of attorney delegating 
authority to a subagent only if the original power of attorney contains 
express authority from the principal for the appointment of a subagent 
or subagents. Any subagent so appointed must be a resident authorized to 
accept service of process in accordance with Sec. 141.36.
    (c) Customhouse brokers. A power of attorney executed in favor of a 
licensed customhouse broker may specify that the power of attorney is 
granted to the broker to act through any of its licensed officers or 
authorized employees as provided in part 111 of this chapter.



Sec. 141.44  Designation of Customs ports in which power of attorney 
is valid.

    Unless a power of attorney specifically authorizes the agent to act 
thereunder at all Customs ports, the name of each port where the agent 
is authorized to act thereunder shall be stated in the power of 
attorney. The power of attorney shall be filed with any port director, 
in a sufficient number of copies for distribution to each port where the 
agent is to act, unless exempted from filing by Sec. 141.46. The port 
director with whom a power of attorney is filed, irrespective of whether 
his port is named therein, shall approve it, if it is in the correct 
form and the provisions of this subpart are complied with, and forward 
any copies intended for other ports as appropriate.



Sec. 141.45  Certified copies of power of attorney.

    Upon request of a party in interest, a port director having on file 
an original power of attorney document (which is not limited to 
transactions in a specific Customs location) will forward a certified 
copy of the document to another port director.

[T.D. 95-77, 60 FR 50020, Sept. 27, 1995]



Sec. 141.46  Power of attorney retained by customhouse broker.

    Before transacting Customs business in the name of his principal, a 
customhouse broker is required to obtain a valid power of attorney to do 
so. He is not required to file the power of attorney with a port 
director. Customhouse brokers shall retain powers of attorney with their 
books and papers, and make them available to representatives of the 
Department of the Treasury as provided in subpart C of part 111 of this 
chapter.



      Subpart D_Quantity of Merchandise To Be Included in an Entry



Sec. 141.51  Quantity usually required to be in one entry.

    All merchandise arriving on one conveyance and consigned to one 
consignee must be included on one entry, except as provided in Sec. 
141.52. In addition, a shipment of merchandise that arrives by separate 
conveyances at the same port of entry in multiple portions, as a split 
shipment, may be processed under a single entry, as prescribed in Sec. 
141.57.

[T.D. 03-09, 68 FR 8719, Feb. 25, 2003]



Sec. 141.52  Separate entries for different portions.

    If the port director is satisfied that there will be no prejudice 
to: Import admissibility enforcement efforts; the revenue; and the 
efficient conduct of Customs business, separate entries may be made for 
different portions of all merchandise arriving on one vessel or vehicle 
and consigned to one consignee under any of the following circumstances:
    (a) Each portion of a consolidated shipment addressed to one 
consignee

[[Page 16]]

for various ultimate consignees may be entered separately under the 
procedure set forth in Sec. 141.54.
    (b) One or more of the enclosed packages in a packaged package may 
be entered separately under any appropriate form of formal or informal 
entry. No entry is required for an enclosed package which contains 
merchandise unconditionally free of duty and not exceeding $250 in 
value. A packed package is an outer package in which are contained inner 
packages addressed for delivery to two or more different persons, as 
described in section 484(f), Tariff Act of 1930, as amended (19 U.S.C. 
1484(f)). Each outer container shall be marked to indicate that it is a 
packed package.
    (c) The consignee desires to enter different portions under 
different forms of entry, for transportation to different ports of 
entry, or for warehousing in separate warehouses.
    (d) Appraisement is being withheld upon merchandise of the class or 
kind for which a separate entry is tendered.
    (e) The several portions of the consignment for which separate 
entries are tendered are covered by separate bills of lading.
    (f) The consignment consists of different classes of merchandise 
which are to be processed by different Customs commodity specialist 
teams.
    (g) The consignment contains merchandise subject to entry under a 
bond given to assure accounting for final disposition, such as a 
temporary importation under bond.
    (h) The consignment consists of different importations which arrived 
under a consolidated entry for immediate transportation made pursuant to 
Sec. 18.11(g) of this chapter.
    (i) A special application is submitted to the Commissioner of 
Customs with the recommendation of the port director concerned and is 
approved by the Commissioner.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-171, 49 
FR 31253, Aug. 3, 1984; T.D. 84-213, 49 FR 41184, Oct. 19, 1984; T.D. 
85-38, 50 FR 8723, Mar. 5, 1985]



Sec. 141.53  Procedure for separate entries.

    When separate entries for one consignment are made in accordance 
with Sec. 141.52 (b) through (i), the following procedures shall apply:
    (a) The entries shall be presented simultaneously when practicable.
    (b) A separate consignee's declaration shall be filed for each 
entry.
    (c) Each entry shall cover whole packages or not less than 1 ton of 
bulk merchandise, except when a portion of the merchandise is entered 
under a temporary importation bond in accordance with Chapter 98, 
Subchapter XIII, Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202).
    (d) When separate entries are made for merchandise covered by a 
single bill of lading or air waybill, the provisions of Sec. 141.54 
shall be complied with, except that the endorsement on the bill of 
lading or air waybill required by Sec. 141.54(b) shall read as follows:

    As portions of the within-described merchandise will be covered by 
separate entries, the undersigned consignee expressly waives the right 
granted by section 484(j), Tariff Act of 1930, as amended, to have this 
bill of lading or air waybill returned.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49788, Oct. 25, 1978; T.D. 89-1, 53 FR 51256, Dec. 21, 1988]



Sec. 141.54  Separate entries for consolidated shipments.

    When separate entries for consolidated shipments are made in 
accordance with Sec. 141.52(a), the following procedures shall apply 
except where the merchandise is released directly to the carrier in 
accordance with Sec. 141.11(b):
    (a) Deposit of evidence of right to make entry. The nominal 
consignee of a consolidated shipment covering merchandise for various 
ultimate consignees who desire to make separate entries shall deposit 
with the port director evidence of the right to make entry as set forth 
in Sec. 141.11(a), and such evidence shall be permanently retained by 
the port director.
    (b) Waiver of right to have bill of lading or air waybill returned. 
If a bill of lading or air waybill is filed, it shall contain the 
following endorsement signed by the consignee named therein:

    As the within-described merchandise belongs to various ultimate 
consignees who desire to make separate entries therefor, the undersigned 
consignee thereof hereby expressly waives the right granted by section

[[Page 17]]

484(j), Tariff Act of 1930, as amended, to have this bill of lading or 
air waybill returned.

    (c) Certificate by nominal consignee. Except when an authority to 
make entry for a portion of a consolidated shipment is executed on the 
entry form in the space provided, at the time of depositing the bill of 
lading, air waybill, or other document, the named consignee shall 
produce a certificate prepared and signed by him for each portion of the 
shipment for which separate entry is desired. The authority to make 
entry carried by such a certificate may be transferred by endorsement. 
The certificate shall be in the following form:

                                                    Port of ------------
                                                      ------------, 19--

                         Authority To Make Entry

    Of merchandise imported at ------------------------, 19--, per ----
--------, from ------------ shipped by ------------, consigned to ------
------, endorsed to ------------, covered by 1------------ 
dated ------------, 19--, at ------------ on file with the port director 
at ------------.
---------------------------------------------------------------------------

    \1\ Insert ``bill of lading,'' ``air waybill,'' ``certified 
duplicate bill of lading,'' ``certified duplicate air waybill,'' 
``carrier's certificate,'' or ``shipping receipt.''

------------------------------------------------------------------------
       Marks                 Numbers                 Description
------------------------------------------------------------------------
 
 
 
 
------------------------------------------------------------------------

    (We) (I) ------------------------, the consignee(s) in the above-
mentioned document covering merchandise for various ultimate consignees, 
hereby authorize ------------ or order to make Customs entry for the 
above described merchandise.
________________________________________________________________________
                                                          (Consignee(s))

    (d) Verification of certificate. When a certificate on a separate 
document as described in paragraph (c) of this section is presented, it 
shall be compared with the supporting document and after being initialed 
by the ministerial clerk shall be returned to the consignee for 
transmittal to the person who will make entry. When an entry is received 
having executed in the space provided thereon an authority to make entry 
for a portion of a consolidated shipment, such authority shall be 
compared with the supporting document.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49788, Oct. 25, 1978]



Sec. 141.55  Single entry summary for shipments arriving under one 
transportation entry.

    Except for merchandise subject to a quantitative or tariff-rate 
quota, port directors are authorized to accept one entry summary for 
consumption or for warehouse for the entire quantity of merchandise 
covered by an entry for immediate transportation after the arrival of 
any part of the merchandise at the port of destination or at a place of 
deposit outside the port as may be authorized in accordance with Sec. 
18.11(c) of this chapter.

[T.D. 79-221, 44 FR 46817, Aug. 9, 1979]



Sec. 141.56  Single entry summary for multiple transportation entries 
consigned to the same consignee.

    (a) Requirement. Port directors may accept one entry summary for 
consumption or for warehouse for merchandise covered by multiple entries 
for immediate transportation, subject to the requirements of Sec. 
142.17(a) of this chapter, provided the merchandise covered by each 
immediate transportation entry is released at the port of destination 
under a separate entry, in accordance with Sec. 142.3 of this chapter.
    (b) Limitation. A single entry summary for multiple transportation 
entries shall not be accepted for any merchandise listed in Sec. 
142.17(b) of this chapter.
    (c) Information on the entry summary. Each entry for immediate 
transportation shall be identified separately on the entry summary by 
the immediate transportation entry number and the corresponding entry 
number.

[T.D. 79-221, 44 FR 46817, Aug. 9, 1979]



Sec. 141.57  Single entry for split shipments.

    (a) At election of importer of record. At the election of the 
importer of record, Customs may process a split shipment, pursuant to 
section 484(j)(2), Tariff Act

[[Page 18]]

of 1930 (19 U.S.C. 1484(j)(2)), under a single entry, as prescribed 
under the procedures set forth in this section.
    (b) Split shipment defined. A ``split shipment'', for purposes of 
this section, means a shipment:
    (1) Which may be accommodated on a single conveyance, and which is 
delivered to and accepted by a carrier in the exporting country under 
one bill of lading or waybill, and is thus intended by the importer of 
record to arrive in the United States as a single shipment;
    (2) Which is thereafter divided by the carrier, acting on its own, 
into different portions which are transported and consigned to the same 
party in the United States; and
    (3) Of which the first portion and all succeeding portions arrive at 
the same port of entry in the United States, as listed in the original 
bill of lading or waybill; and all the succeeding portions arrive at the 
port of entry within 10 calendar days of the date of the first portion. 
If any portion of the shipment arrives at a different port, such portion 
must be transported in-bond to the port of destination where entry of 
the shipment is made.
    (c) Notification by importer of record. The importer of record must 
notify Customs, in writing, that the shipment has been split at the 
carrier's initiative, that the remainder of the shipment will arrive by 
subsequent conveyance(s), and that an election is being made to file a 
single entry for all portions. The required notification must be given 
as soon as the importer of record becomes aware that the shipment has 
been split, but in all cases notification must be made before the entry 
summary is filed.
    (d) Entry or special permit for immediate delivery. In order to make 
a single entry for a split shipment or obtain a special permit for the 
release of a split shipment under immediate delivery, an importer of 
record may follow the procedure prescribed in paragraph (d)(1) or (d)(2) 
of this section, as applicable.
    (1) Entry or special permit after arrival of entire shipment. An 
importer of record may file an entry at such time as all portions of the 
split shipment have arrived at the port of entry (see paragraph (b)(3) 
of this section). In the alternative, again after the arrival of all 
portions of a split shipment at the port of entry, the importer of 
record may instead file a special permit for immediate delivery provided 
that the merchandise is eligible for such a permit under Sec. 
142.21(a)--(f) and (h) of this chapter. In either case, the importer of 
record must file Customs Form (CF) 3461 or CF 3461 alternate (CF 3461 
ALT) as appropriate, or electronic equivalent, with Customs. The entry 
or special permit must indicate the total number of pieces in, as well 
as the total value of, the entire shipment as reflected on the 
invoice(s) covering the shipment.
    (2) Special permit prior to arrival of entire shipment. As provided 
in Sec. 142.21(g) of this chapter, an importer of record may also file 
a special permit for immediate delivery after the arrival of the first 
portion of a split shipment at the port of entry (see paragraph (b)(3) 
of this section), but before the arrival of the entire shipment at such 
port, thus qualifying the split shipment for incremental release, under 
paragraph (e) of this section, as each portion of the shipment arrives 
at the port of entry (see paragraph (g)(2)(ii) of this section). In such 
case, a CF 3461 or CF 3461 ALT as appropriate, or electronic equivalent, 
must be filed with Customs. As each portion arrives at the port of 
entry, the importer of record must submit a copy of the CF 3461/CF 3461 
ALT, adjusted to reflect the quantity of that particular portion 
relative to the quantity contained in the entire split shipment (see 
paragraph (b)(1) of this section); however, if both the carrier and the 
importer of record are automated, such adjustments may instead be made 
electronically through the Customs ACS (Automated Commercial System). In 
the event that an entry has been pre-filed with Customs (see Sec. 
142.2(b) of this chapter), notification to Customs by the importer of 
record that a single entry will be filed for shipments released 
incrementally will serve as a request that the pre-filed entry be 
converted to an application for a special permit for immediate delivery 
(see Sec. 142.21(g) of this chapter). The special permit must indicate 
the total number of pieces in, as well as the total value of, the entire 
shipment as reflected on the invoice(s) covering

[[Page 19]]

the shipment. Customs may limit the release of each portion of the split 
shipment upon arrival at the port of entry, as permitted under this 
paragraph, due to the need to examine the merchandise in accordance with 
paragraph (f) of this section.
    (e) Release. To secure the separate release upon arrival of each 
portion of a split shipment at the port of destination under paragraph 
(d)(2) of this section, the carrier responsible for initially splitting 
the shipment must present to Customs, either on a paper manifest or 
through an authorized electronic data interchange system, manifest 
information relating to the shipment that reflects exact information for 
each portion of the split shipment. The carrier responsible for 
splitting the shipment must notify other obligated entities (such as 
another carrier or freight forwarder) that have submitted electronic 
manifest information to Customs about the shipment that was split so 
that these parties can update their manifest information to Customs.
    (f) Examination. Customs may require examination of any or all parts 
of the split shipment. For split shipments subject to the immediate 
delivery procedure of paragraph (d)(2) of this section, Customs reserves 
the right to deny incremental release should such an examination of the 
merchandise be necessary. The denial of incremental release does not 
preclude the use of the procedures specified in paragraph (d)(1) of this 
section.
    (g) Entry summary--(1) Entry. For merchandise entered under 
paragraph (d)(1) of this section, the importer of record must file an 
entry summary within 10 working days from the time of entry.
    (2) Release for immediate delivery--(i) Release under paragraph 
(d)(1) of this section. For merchandise released under a special permit 
for immediate delivery pursuant to paragraph (d)(1) of this section, the 
importer of record must file the entry summary, which serves as both the 
entry and the entry summary, within 10 working days after the 
merchandise or any part of the merchandise is authorized for release 
under the special permit or, for quota class merchandise, within the 
quota period, whichever expires first (see Sec. 142.23 of this 
chapter).
    (ii) Release under paragraph (d)(2) of this section. For merchandise 
released under a special permit for immediate delivery pursuant to 
paragraph (d)(2) of this section, the importer of record must file the 
entry summary, which serves as both the entry and the entry summary, 
within 10 working days from the date of the first release of a portion 
of the split shipment. The filed entry summary must reflect all portions 
of the split shipment which have been released, to include quantity, 
value, correct classification and rate of duty. The entry summary cannot 
include any portions of the split shipment which have not been released.
    (3) Duty payment. With the entry summary filed under paragraphs 
(g)(1) and (g)(2)(i) and (g)(2)(ii) of this section, the importer of 
record must attach estimated duties, taxes and fees applicable to the 
released merchandise. If the entry summary is filed electronically, the 
estimated duties, taxes and fees must be scheduled for payment at such 
time pursuant to the Automated Clearinghouse (see Sec. 24.25 of this 
chapter).
    (h) Classification. For purposes of section 484(j)(2), Tariff Act of 
1930 (19 U.S.C. 1484(j)(2)), the merchandise comprising the separate 
portions of a split shipment included on one entry will be classified as 
though imported together.
    (i) Separate entry required--(1) Untimely arrival. The importer of 
record must enter separately those portions of a split shipment that do 
not arrive at the port of entry within 10 calendar days of the portion 
that arrived there first (see paragraph (b)(3) of this section).
    (2) Different rates of duty for identically classified merchandise. 
An importer of record will be required to file a separate entry for any 
portion of a split shipment if necessary to preclude the application of 
different rates of duty on a split shipment entry for merchandise that 
is classifiable under the same subheading of the Harmonized Tariff 
Schedule of the United States (HTSUS).

[[Page 20]]

    (j) Requirement of importer of record to review entry and maintain 
evidence substantiating splitting of shipment--(1) Review of entry. The 
importer of record will be responsible for reviewing the total 
manifested quantity shown on the CF 3461/CF 3461 ALT, or electronic 
equivalent, in relation to all portions of the split shipment that 
arrived at the port of entry under paragraph (b)(3) of this section 
within the specified 10 calendar day period. At the conclusion of the 
specified 10 calendar day period, the importer of record must make any 
adjustments necessary to reflect the actual amount, value, correct 
classification and rate of duty of the merchandise that was released 
incrementally under the split shipment procedures. If all portions of 
the split shipment do not arrive within the required 10 calendar day 
period, the importer of record must file an additional entry or entries 
as appropriate to cover any remaining portions of the split shipment 
that subsequently arrive (see paragraph (i)(1) of this section).
    (2) Evidence for splitting of shipment; recordkeeping. The importer 
of record must maintain sufficient documentary evidence to substantiate 
that the splitting of the shipment was done by the carrier acting on its 
own, and not at the request of the foreign shipper and/or the importer 
of record. This documentation should include a copy of the originating 
bill of lading or waybill under which the shipment was delivered to the 
carrier in the country of exportation or other supporting documentary 
evidence, such as a letter from the carrier confirming that the 
splitting of the shipment was done by the carrier on its own initiative. 
This documentary evidence as well as all other necessary records 
received or generated by or on behalf of the importer of record under 
this section must be maintained and produced, if requested, in 
accordance with part 163 of this chapter.
    (k) Single entry limited; exclusions from single entry under 
incremental release procedure--(1) Quota/visa merchandise. Merchandise 
subject to quota and/or visa requirements is excluded from incremental 
release under the immediate delivery procedure set forth in paragraph 
(d)(2) of this section and Sec. 142.21(g) of this chapter. 
Additionally, if by splitting a shipment any portion of it is subject to 
quota, no portion of the split shipment may be released incrementally.
    (2) Other merchandise. In addition, the port director may deny the 
use of the incremental release procedure set forth in paragraph (d)(2) 
of this section and Sec. 142.21(g) of this chapter, as circumstances 
warrant.
    (3) Limited single entry available. For merchandise described in 
paragraphs (k)(1) and (k)(2) of this section, that is excluded from the 
immediate delivery procedure of paragraph (d)(2) of this section and 
Sec. 142.21(g) of this chapter, the importer of record may still file a 
single entry or special permit for immediate delivery under paragraph 
(d)(1) of this section covering the entire split shipment of such 
merchandise following, and to the extent of, its arrival within the 
required 10 calendar day period.

[T.D. 03-09, 68 FR 8719, Feb. 25, 2003]



                 Subpart E_Presentation of Entry Papers



Sec. 141.61  Completion of entry and entry summary documentation.

    (a) Preparation. (1) Entry and entry summary documentation shall be 
prepared on a typewriter, or with ink, indelible pencil, or other 
permanent medium. The entry summary shall be signed by the importer (see 
Sec. 101.1 of this chapter). Entries, entry summaries, and accompanying 
documentation shall be on the appropriate forms specified by the 
regulations and shall set forth clearly all required information. All 
copies shall be legible.
    (2) An importer may omit from entry summary, Customs Form 7501, the 
marks and numbers previously provided for packages released or 
withdrawn.
    (b) ``Signing of the entry''. The signing of the consignee's 
declaration on the entry summary for merchandise entered for 
consumption, for warehouse, or for temporary importation under bond, in 
accordance with Sec. 141.19, shall be regarded as the ``signing of the 
entry'' required by section 484(d), Tariff Act of 1930, as amended (19 
U.S.C.

[[Page 21]]

1484(d)). For a rewarehouse or a bonded manufacturing warehouse entry, 
the signing of the consignee's declaration on the entry documentation 
shall satisfy 19 U.S.C. 1484(d).
    (c) Identification number for merchandise subject to an antidumping 
or countervailing duty order. The entry summary filed for merchandise 
subject to an antidumping or countervailing duty order shall include the 
unique identifying number assigned by the Department of Commerce, 
International Trade Administration. Any entry summary filed for 
merchandise subject to an antidumping or countervailing duty order not 
containing the identifying number shall be rejected.
    (d) Importer number. The importer number shall be reported on 
Customs Form 7501 as follows:
    (1) Generally. Except as provided in paragraph (d)(2) of this 
section, the importer number of the importer of record and the consignee 
number of the ultimate consignee shall be reported for each entry 
summary and for each drawback entry. When the importer of record and the 
ultimate consignee are the same, the importer number may be entered in 
both spaces provided on Customs Form 7501 (boxes 10 and 12) or the 
importer number may be entered in the space provided for the importer 
(box 12) and the word ``SAME'' may be entered in the space provided for 
the ultimate consignee (box 10).
    (2) Exception. In the case of a consolidated entry summary covering 
the merchandise of more than one ultimate consignee, the importer number 
shall be reported on Customs Form 7501 (box 12) and the notation 
``CONSOLIDATED'' shall be made in the space provided for the consignee 
number (box 10).
    (3) When refunds, bills, or notices of liquidation are to be mailed 
to agent. If an importer of record desires to have refunds, bills, or 
notices of liquidation mailed in care of his agent, the agent's importer 
number shall be reported on Customs Form 7501 in the box designated 
``Reference No'' (box 22). In this case, the importer of record shall 
file, or shall have filed previously, a Customs Form 4811 authorizing 
the mailing of refunds, bills, or notices of liquidation to the agent.
    (4) Broker No. If a broker is used, the broker's number shall be 
reported in the appropriate location on Customs Form 7501.
    (e) Statistical information--(1) Information required on entry 
summary or withdrawal form--(i) Where form provides space--(A) Single 
invoice. For each class or kind of merchandise subject to a separate 
statistical reporting number, the applicable information required by the 
General Statistical Notes, Harmonized Tariff Schedule of the United 
States (HTSUS), shall be shown on the entry summary, Customs Form 7501; 
the transportation entry and manifest of goods, Customs Form 7512, when 
used to document an incoming vessel shipment proceeding to a third 
country by means of an entry for transportation and exportation, or 
immediate exportation.
    (B) Multiple invoices. If a class or kind of merchandise from the 
same country of origin subject to the same statistical reporting number 
is included in more than one invoice, the importer may, at his option 
(1) list each invoice separately on the appropriate form listed under 
paragraph (e)(1)(i)(A) of this section and for each class or kind of 
merchandise within each invoice subject to a separate statistical 
reporting number, report the applicable information required by the 
General Statistical Notes, HTSUS; or (2) combine the information for 
each class or kind of merchandise and report it under one statistical 
reporting number for all invoices. When consolidating information from 
several invoices under one reporting number, a worksheet itemizing the 
entered value of the merchandise from each invoice in the manner 
prescribed in paragraph (f)(2)(ii) of this section shall be attached to 
the appropriate form.
    (ii) Where form does not provide space. In addition to the 
information required by paragraph (e)(1)(i) of this section, statistical 
information for which spaces are not provided on the appropriate form, 
shall be shown as follows:
    (A) The name, the abbreviated designation or 4 digit code of the 
country of registry (flag) of the vessel expressed in terms of Annex B, 
HTSUS, shall be

[[Page 22]]

placed in the block on the entry document for the name of the importing 
vessel or carrier.
    (B) The notation ``Y'' or ``N'' as appropriate, shall be placed in 
column 33 of Customs Form 7501, and in the top right hand portion of 
Customs Form 7519, to identify the transaction as one between a buyer 
and a seller who are related in any manner, or as one between a buyer 
and a seller who are not so related.
    (C) The charges (aggregate cost of freight, insurance and all other 
charges), shall be listed on Customs Form 7501 in column 33. The charges 
shall be listed on Customs Form 7519 in the rate column.
    (2) Responsibility. The person filing the form is responsible for 
providing the information required by paragraph (e)(1) of this section. 
If the information required by subparagraph General Statistical Note 
1(a)(xiv)(xvii), HTSUS, cannot be obtained readily, the person filing 
the form shall provide reasonable estimates of the required information. 
The acceptance of an estimate for a particular transaction does not 
relieve the person filing the form from obtaining the necessary 
information for similar future transactions. The port director may 
require additional documentation to substantiate the statistical 
information required by paragraph (e)(1) of this section. The importer 
shall give an appropriate bond for the production of the required 
documentation, as follows:
    (i) Except for merchandise entered for warehouse, the documentation 
shall be produced within 50 days after the entry summary (or the entry, 
if there is no entry summary) is required to be filed.
    (ii) If merchandise is entered for warehouse, the documentation 
shall be produced within 2 months after the date of withdrawal, except 
that if an invoice is part of the documentation, the invoice shall be 
produced within 50 days after the entry summary for warehouse is 
required to be filed.

The port director may grant a reasonable extension of time to produce 
the required documentation for good cause shown. (See Sec. 141.91(d) 
for bond requirements relating to failure to produce an invoice.)
    (3) Estimates of statistical information. When the person filing the 
form estimates any of the values or charges, as provided for in General 
Statistical Note 1(b)(ii), HTSUS, except Canadian rail and truck 
charges, he shall place either ``(estimate)'', ``(est)'', or (``E'') 
after the amount of each value or charge.
    (4) Rejection of form. The port director shall reject a form for 
failure to provide required statistical information if the information 
is omitted or if the information provided clearly appears on its face, 
or is known to the Customs officer, to be erroneous.
    (5) Penalty procedures; when not invoked. Penalty procedures 
relating to erroneous statistical information shall not be invoked 
against any person who in good faith attempts to comply with the 
statistical requirements of the General Statistical Note, HTSUS.
    (f) Value of each invoice--(1) Single invoice. If the entry, entry 
summary, or withdrawal documentation, as specified in paragraph 
(e)(1)(i) of this section, covers a single invoice, the invoice 
information shall be restated to show:
    (i) Gross amount of the invoice;
    (ii) Deduction of the aggregate amount of any non-dutiable charges 
involved in the amount;
    (iii) Further deduction of the aggregate of any deductions from the 
invoice values to make entered values; and
    (iv) Addition of the aggregate of any dutiable charges not included 
in the gross amount of the invoice and of any other additions to the 
invoice values to make entered values. The final amount in the summary 
computations shall represent the aggregate of the entered values of all 
the merchandise covered by the invoice. The required information shall 
be shown on a worksheet attached to the form or placed across columns 30 
and 31 on Customs Form 7501 and in the same general location on Customs 
Forms 7505, 7506.
    (2) Multiple invoices. (i) If the importer or his agent elects the 
first option specified in paragraph (e)(1)(i)(B) of this section, the 
information required to be restated by paragraph (f)(1) of this section 
for a single invoice shall be restated for each invoice. The required 
information shall be shown on

[[Page 23]]

a worksheet attached to the form or placed across columns 30 and 31 on 
Customs Form 7501.
    (ii) If the importer or his agent elects the second option specified 
in paragraph (e)(1)(i)(B) of this section, the information required to 
be restated by paragraph (f)(1) of this section for a single invoice 
shall be restated for each invoice. The final amount in the summary 
computation shall represent the aggregate of the entered values of all 
the merchandise on each of the multiple invoices. The required 
information shall be shown on an attached worksheet.
    (iii) The worksheet also shall contain:
    (A) A statistical reporting number restatement for the merchandise 
from each invoice subject to the same statistical reporting number from 
the same country of origin, and
    (B) An aggregate total value which represents the entered value.
    (iv) To permit the identification of the merchandise entered under 
each reporting number, each class or kind of merchandise, from one 
country reported under a single statistical reporting number shall be 
coded identically on each invoice and on the worksheet.

[T.D. 79-221, 44 FR 46817, Aug. 9, 1979, as amended by T.D. 81-260, 46 
FR 49841, Oct. 8, 1981; T.D. 84-129, 49 FR 23167, June 5, 1984; T.D. 84-
192, 49 FR 35486, Sept. 10, 1984; T.D. 87-75, 52 FR 20068, May 29, 1987; 
T.D. 89-1, 53 FR 51256, Dec. 21, 1988; T.D. 95-81, 60 FR 52295, Oct. 6, 
1995; T.D. 97-82, 62 FR 51770, Oct. 3, 1997]



Sec. 141.62  Place and time of filing.

    (a) Place. An application for immediate delivery and entry, entry 
summary, or withdrawal documentation shall be filed at the customhouse 
or at any other Customs location approved by the director of the port 
where the merchandise is to be or has been released.
    (b) Time--(1) Normal business hours. (i) Except as provided in 
paragraph (b)(2) of this section, an application for immediate delivery 
or entry documentation shall be filed when the customhouse is open for 
the general transaction of business, or when Customs has established a 
regular tour of duty in accordance with Sec. 101.6(f) of this chapter.
    (ii) Except as provided in paragraph (b)(2) of this section, entry 
summary or withdrawal documentation shall be filed when the customhouse 
is open for the general transaction of business, as provided in Sec. 
101.6 of this chapter.
    (2) Overtime services--(i) Generally. Except as provided in 
paragraph (b)(2)(ii) of this section, an application for immediate 
delivery or entry documentation may be filed when the customhouse is not 
open for the general transaction of Customs business and no regular tour 
of duty has been established; and entry summary or withdrawal 
documentation may be filed when the customhouse is not open for the 
general transaction of business, if:
    (A) The person desiring to transact business has applied for and 
received authorization for overtime services on a reimbursable basis, as 
provided for in Sec. 24.16 of this chapter, and
    (B) Overtime services of Customs officers are available.
    (ii) Quota-class merchandise. Overtime shall not be authorized for 
the presentation of entry summary documentation which serves as both the 
entry and entry summary or withdrawal documentation, for quota-class 
merchandise without Headquarters authorization. If Headquarters 
authorization is granted, the time of delivery of the entry summary or 
withdrawal documentation, with the estimated duties attached, or without 
the estimated duties attached, if the entry/entry summary information 
and a scheduled statement date have been successfully received by 
Customs via the Automated Broker Interface, shall be the time of 
presentation for quota purposes. However, if an entry summary or 
withdrawal for quota-class merchandise is delivered inadvertently during 
overtime hours without Headquarters authorization, the time of 
presentation for quota purposes shall be the opening of business on the 
next business day.

[T.D. 79-221, 44 FR 46818, Aug. 9, 1979, as amended by T.D. 89-104, 54 
FR 50498, Dec. 7, 1989]

[[Page 24]]



Sec. 141.63  Submission of entry summary documentation for preliminary 
review.

    (a) Before arrival of merchandise. Entry summary documentation may 
be submitted at the customhouse for preliminary review, without 
estimated duties attached, within such time before arrival of the 
merchandise as may be fixed by the port director--
    (1) If the entry summary documentation will be filed at time of 
entry to serve as both the entry and the entry summary, as provided in 
Sec. 142.3(b) of this chapter, or
    (2) In the case of quota-class merchandise, if the entry summary for 
consumption will be presented at time of entry, as provided in Sec. 
132.11a of this chapter. Estimated duties shall not be accepted before 
arrival of the merchandise within the port limits.
    (b) After arrival of merchandise. Entry summary documentation may be 
submitted at the customhouse for preliminary review, without estimated 
duties attached, within such time after arrival of quota-class 
merchandise as may be fixed by the port director, if the entry summary 
for consumption will be presented at the opening of the quota period, as 
provided in Sec. 132.12(a) of this chapter. Estimated duties shall not 
be accepted before the opening of the quota period.
    (c) For merchandise entered other than at port of arrival. If 
merchandise is to arrive or has arrived at one port and the importer 
wishes to file his entry documentation at another port to which the 
merchandise is destined, he may do so upon approval of the port director 
at the port of destination. The director of the destination port may 
then authorize release of the merchandise, after its importation at the 
port of arrival, or postpone its release if he believes it is necessary 
for examination or other purposes.

[T.D. 79-221, 44 FR 46819, Aug. 9, 1979, as amended by T.D. 87-78, 52 FR 
24155, June 29, 1987]



Sec. 141.64  Review and correction of entry and entry summary 
documentation.

    Entry and entry summary documentation may be reviewed before 
acceptance to ensure that all entry and statistical requirements are 
complied with and that the indicated values and rates of duty appear to 
be correct. If any errors are found, the entry and the entry summary 
documentation shall not be considered to have been filed in proper form 
and shall be returned to the importer for correction.

[T.D. 79-221, 44 FR 46819, Aug. 9, 1979, as amended by T.D. 99-64, 64 FR 
43266, Aug. 10, 1999]



Sec. 141.65  [Reserved]



Sec. 141.66  Bond for missing documents.

    Unless otherwise prescribed in these regulations, a bond on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 or 
Sec. 113.69 of this chapter, as appropriate, may be given for the 
production of any required document which is not available at the time 
of entry. (See Sec. 141.91 for the procedure applicable to incomplete 
or missing invoices.)

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984]



Sec. 141.67  Recall of documentation.

    The importer may recall the entry and entry summary documentation at 
any time before the effective time of entry set forth in Sec. 141.68. 
The entry shall be considered canceled, and documents shall be returned 
to the importer.

[T.D. 79-221, 44 FR 46819, Aug. 9, 1979]



Sec. 141.68  Time of entry.

    (a) When entry documentation is filed without entry summary. When 
the entry documentation is filed in proper form without an entry 
summary, the ``time of entry'' shall be:
    (1) The time the appropriate Customs officer authorizes the release 
of the merchandise or any part of the merchandise covered by the entry 
documentation, or
    (2) The time the entry documentation is filed, if requested by the 
importer on the entry documentation at the time of filing, and the 
merchandise already has arrived within the port limits; or

[[Page 25]]

    (3) The time the merchandise arrives within the port limits, if the 
entry documentation is submitted before arrival, and if requested by the 
importer on the entry documentation at the time of submission.
    (b) When entry summary serves as entry and entry summary. When an 
entry summary serves as both the entry documentation and entry summary, 
in accordance with Sec. 142.3(b) of this chapter, the time of entry 
shall be the time the entry summary is filed in proper form with 
estimated duties attached except as provided in Sec. 142.13(b).
    (c) When merchandise is released under the immediate delivery 
procedure. The time of entry of merchandise released under the immediate 
delivery procedure shall be the time the entry summary is filed in 
proper form, with estimated duties attached.
    (d) Quota-class merchandise. The time of entry for quota-class 
merchandise shall be the time of presentation of the entry summary or 
withdrawal for consumption in proper form, with estimated duties 
attached, or if the entry/entry summary information and a valid 
scheduled statement date (pursuant to Sec. 24.25 of this chapter) have 
been successfully received by Customs via the Automated Broker 
Interface, without the estimated duties attached, as provided in Sec. 
132.11a of this chapter.
    (e) When merchandise has not arrived. Merchandise shall not be 
authorized for release, nor shall an entry or an entry summary which 
serves as both the entry and entry summary be considered filed or 
presented, until the merchandise has arrived within the port limits with 
the intent to unlade.
    (f) Informal mail entry. The time of entry of merchandise under an 
informal mail entry, Customs Form 3419 or 3419A or Customs Form 368 or 
368A, is the time the preparation of the entry documentation by a 
Customs employee is completed.
    (g) Withdrawal from warehouse for consumption. The time of entry of 
merchandise withdrawn from warehouse for consumption (the process 
preparatory to the issuance of a permit for the release of the 
merchandise to or upon the order of the warehouse proprietor) is when:
    (1) Customs Form 7501 is executed in proper form and filed together 
with any related documentation required by these regulations to be filed 
at the time of withdrawal, and
    (2) Estimated duties, if any, required to be paid at the time of 
withdrawal have been deposited.

Unless the requirements of this paragraph and section 315(a), Tariff Act 
of 1930, as amended (19 U.S.C. 1315(a)), including the deposit of 
estimated duties, if any, are completed within 60 days from the date of 
presentation of Customs Form 7501, the request for withdrawal shall be 
considered abandoned.
    (h) Appraisement entry, informal entry, combined entry for 
rewarehouse and withdrawal for consumption, and entry under carnet. The 
time of entry of merchandise under an appraisement entry, or informal 
entry, Customs Form 7501, an informal entry, Customs Form 368 or 368A 
(serially numbered) (or other form prescribed in Sec. 143.23 or 
elsewhere in the chapter for use as an informal entry), a combined entry 
for rewarehouse and withdrawal for consumption, Customs Form 7519, or an 
A.T.A. carnet issued under part 114 of this chapter, shall be the time 
the specified form is executed in proper form and filed, together with 
any related documents required by these regulations, and estimated 
duties, if any, have been deposited. If merchandise eligible for 
informal entry is released under a special permit for immediate delivery 
and Customs Form 368 or 368A (serially numbered) or 7501 is filed in 
accordance with Sec. 142.23 of this chapter, the time of entry shall be 
the time Customs Form 368 or 368A or 7501 is filed in proper form, 
together with any related documents required by this chapter, and 
estimated duties, if any, have been deposited. However, if merchandise 
eligible for informal entry is released under the entry documentation 
set forth in Sec. 142.3(a) of this chapter and Customs Form 368 or 368A 
(serially numbered) or 7501 is filed in accordance with Sec. 142.23, 
the time of entry shall be in accordance with paragraph (a) of this 
section.
    (i) Exportation to Canada or Mexico of goods imported into the 
United States under a duty-deferral program defined in Sec. 181.53 of 
this chapter. When merchandise in a U.S. duty-deferral program is

[[Page 26]]

withdrawn for exportation to Canada or Mexico or for entry into a duty-
deferral program in Canada or Mexico, the date of entry is the date the 
entry is required to be filed under Sec. 181.53(a)(2)(iii) of this 
chapter.

[T.D. 79-221, 44 FR 46819, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23167, June 5, 1984; T.D. 87-75, 52 FR 26142, July 13, 1987; T.D. 89-
104, 54 FR 50498, Dec. 7, 1989; T.D. 91-73, 56 FR 42527, Aug. 28, 1991; 
T.D. 92-56, 57 FR 24944, June 12, 1992; T.D. 95-81, 60 FR 52295, Oct. 6, 
1995; T.D. 96-14, 61 FR 2911, Jan. 30, 1996; T.D. 99-64, 64 FR 43266, 
Aug. 10, 1999]



Sec. 141.69  Applicable rates of duty.

    The rates of duty applicable to merchandise shall be the rates in 
effect at time of entry, as specified in Sec. 141.68, except as 
otherwise specifically provided for by Executive Order, and in the 
following cases:
    (a) Warehouse entries. Merchandise entered for warehouse is dutiable 
at the rates in effect at the time withdrawal from warehouse for 
consumption is made in accordance with Sec. 141.68(g).
    (b) Merchandise entered for immediate transportation. Merchandise 
which is not subject to a quantitative or tariff-rate quota and which is 
covered by an entry for immediate transportation made at the port of 
original importation, if entered for consumption at the port designated 
by the consignee or his agent in such transportation entry without 
having been taken into custody by the port director for general order 
under section 490, Tariff Act of 1930, as amended (19 U.S.C. 1490), 
shall be subject to the rates in effect when the immediate 
transportation entry was accepted at the port of original importation.
    (c) Overcarried merchandise returned to port of entry. If 
merchandise which has been entered for consumption, but not yet released 
from Customs custody, is removed from the port or place of intended 
release because of overcarriage, inaccessibility, strike, act of God, or 
unforeseen contingency, and is returned to such port or place within 90 
days after removal, such merchandise shall be subject to the rates in 
effect at the time of the original entry, provided the merchandise is 
identified with the original entry by the usual Customs examination and 
by any documentary evidence as to its movement between its removal and 
return which the port director may reasonably require. A new entry shall 
be required, unless the original entry has not been liquidated and the 
consignee at the time of original importation and at the time of return 
is the same person.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46820, Aug. 9, 1979; T.D. 90-34, 55 FR 17597, Apr. 26, 1990; T.D. 97-
82, 62 FR 51771, Oct. 3, 1997]



                           Subpart F_Invoices



Sec. 141.81  Invoice for each shipment.

    A commercial invoice shall be presented for each shipment of 
merchandise at the time the entry summary is filed, subject to the 
conditions set forth in these regulations. Except in the case of 
installment shipments provided for in Sec. 141.82, an invoice shall not 
represent more than one distinct shipment of merchandise by one 
consignor to one consignee by one vessel or conveyance.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-53, 43 FR 
6069, Feb. 13, 1978; T.D. 79-221, 44 FR 46820, Aug. 9, 1979; T.D. 85-39, 
50 FR 9612, Mar. 11, 1985; T.D. 93-66, 58 FR 44130, Aug. 19, 1993]



Sec. 141.82  Invoice for installment shipments arriving within a period 
of 10 days.

    (a) One invoice sufficient. Installments of a shipment covered by a 
single order or contract and shipped from one consignor to one consignee 
may be included in one invoice if the installments arrive at the port of 
entry by any means of transportation within a period of not to exceed 10 
consecutive days.
    (b) Preparation of invoice. The invoice shall be prepared in the 
manner provided for in this subpart and, when practicable, shall show 
the quantities, values, and other invoice data with respect to each 
installment, the date of shipment of each installment, and the car 
number or other identification of the importing conveyance in which it 
was shipped.
    (c) Pro forma invoice. If the required invoice is not filed with the 
first entry of an installment series, a pro forma

[[Page 27]]

invoice shall be filed with each entry made before the required invoice 
is produced, and in accordance with Sec. 141.91 a bond shall be given, 
or charge against a continuous bond made, for the production of the 
required invoice. Liquidated damages will accrue in the case of each 
entry if more than 6 months expire without the production of an invoice 
for such entry.
    (d) Informal entry. Any bona fide installment valued at not over 
$2,000 (except for articles valued in excess of $250 classified in 
Sections VII, VIII, XI, and XII; Chapter 94; and Chapter 99, Subchapters 
III and IV. Harmonized Tariff Schedule of the United States may be 
entered on an informal entry in accordance with subpart C of part 143 of 
this chapter, in which case such installment need not be considered in 
connection with invoice requirements for the balance of the series.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 75-27, 40 FR 
3449, Jan. 22, 1975; T.D. 78-53, 43 FR 6069, Feb. 13, 1978; T.D. 84-213, 
49 FR 41184, Oct. 19, 1984; T.D. 85-123, 50 FR 29954, July 23, 1985; 
T.D. 89-1, 53 FR 51256, Dec. 21, 1988; T.D. 89-82, 54 FR 36026, Aug. 31, 
1989; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; T.D. 98-28, 63 FR 16417, 
Apr. 3, 1998]



Sec. 141.83  Type of invoice required.

    (a)-(b) [Reserved]
    (c) Commercial invoice. (1) A commercial invoice shall be filed for 
each shipment of merchandise not exempted by paragraph (d) of this 
section. The commercial invoice shall be prepared in the manner 
customary in the trade, contain the information required by Sec. Sec. 
141.86 through 141.89, and substantiate the statistical information 
required by Sec. 141.61(e) to be given on the entry, entry summary, or 
withdrawal documentation.
    (2) The port director may accept a copy of a required commercial 
invoice in place of the original. A copy, other than a photostatic or 
photographic copy, shall contain a declaration by the foreign seller, 
the shipper, or the importer that it is a true copy.
    (d) Commercial invoice not required. A commercial invoice shall not 
be required in connection with the filing of the entry, entry summary, 
or withdrawal documentation for merchandise listed in this paragraph. 
The importer, however, shall present any invoice, memorandum invoice, or 
bill pertaining to the merchandise which may be in his possession or 
available to him. If no invoice or bill is available, a pro forma (or 
substitute) invoice, as provided for in Sec. 141.85, shall be filed, 
and shall contain information adequate for the examination of 
merchandise and the determination of duties, and information and 
documentation which verify the information required for statistical 
purposes by Sec. 141.61(e). The merchandise subject to the foregoing 
requirements is as follows:
    (1) [Reserved]
    (2) Merchandise not intended for sale or any commercial use in its 
imported condition or any other form, and not brought in on commission 
for any person other than the importer.
    (3)-(4) [Reserved]
    (5) Merchandise returned to the United States after having been 
exported for repairs or alteration under subheadings 9802.00.40 and 
9802.00.60, Harmonized Tariff Schedule of the United States (19 U.S.C. 
1202).
    (6) Merchandise shipped abroad, not delivered to the consignee, and 
returned to the United States.
    (7) Merchandise exported from continuous Customs custody within 6 
months after the date of entry.
    (8) Merchandise consigned to, or entered in the name of, any agency 
of the U.S. Government.
    (9) Merchandise for which an appraisement entry is accepted.
    (10) Merchandise entered temporarily into the Customs territory of 
the United States under bond or for permanent exhibition under bond.
    (11) Merchandise provided for in section 466, Tariff Act of 1930 (19 
U.S.C. 1466), which pertain to certain equipment, repair parts, and 
supplies for vessels.
    (12) Merchandise imported as supplies, stores, and equipment of the 
importing carrier and subsequently made subject to entry pursuant to 
section 446, Tariff Act of 1930, as amended (19 U.S.C. 1446).
    (13) Ballast (not including cargo used for ballast) landed from a 
vessel and delivered for consumption.

[[Page 28]]

    (14) Merchandise, whether privileged or nonprivileged, resulting 
from manipulation or manufacture in a foreign trade zone.
    (15) Screenings contained in bulk importations of grain or seeds.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-53, 43 FR 
6069, Feb. 13, 1978; T.D. 79-221, 44 FR 46820, Aug. 9, 1979; T.D. 82-
224, 47 FR 53728, Nov. 29, 1982; T.D. 84-213, 49 FR 41184, Oct. 19, 
1984; T.D. 85-39, 50 FR 9612, Mar. 11, 1985; T.D. 89-1, 53 FR 51256, 
Dec. 21, 1988; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; T.D. 94-24, 59 FR 
13200, Mar. 21, 1994; T.D. 97-82, 62 FR 51771, Oct. 3, 1997]



Sec. 141.84  Photocopies of invoice for separate entries of same shipment.

    (a) Entries at one port. If by reason of accident or short shipment 
a portion of the quantity covered by one invoice fails to arrive, or if 
for any other reason only a portion of the quantity covered by one 
invoice is entered under one entry, a photocopy of the commercial 
invoice used in connection with the first entry, covering the quantity 
to be entered under another entry, may be used in connection with the 
subsequent entry of any portion of the merchandise not cleared under the 
first entry.
    (b) Entries from foreign-trade zone at one port. A photocopy of the 
invoice filed with the first entry for consumption from a foreign-trade 
zone of a portion of the merchandise shown on the invoice will not be 
required for any subsequent entry for consumption from that zone at the 
same port of a portion of any merchandise covered by such invoice, if a 
pro forma invoice is filed and identifies the entry first made and the 
invoice then filed.
    (c) Entries at different ports. When portions of a single shipment 
requiring a commercial invoice are entered at different ports, the 
importer may submit to the port director where the original invoice or 
latest photocopy of the original invoice is on file, two photocopies of 
the latest of such invoices to be certified as to merchandise previously 
received, and the official seal affixed thereto.
    (d) Pro forma invoice. In a case in which a portion of the shipment 
is entered at the first port on a pro forma invoice, an entry at a 
subsequent port may be made by means of a new pro forma invoice which 
may cover only the merchandise then entered.
    (e) Photocopy to satisfy bond for invoice. A properly certified 
photocopy of a commercial invoice presented within 6 months after the 
date of entry may be accepted to cancel the charges against the bond 
given for the production of the commercial invoice.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984; T.D. 85-39, 50 FR 9612, Mar. 11, 1985]



Sec. 141.85  Pro forma invoice.

    A pro forma invoice submitted in accordance with any provision of 
this chapter shall be in substantially the following form:

                            Pro Forma Invoice

Importers Statement Of Value Or The Price Paid In The Form Of An Invoice

    Not being in possession of a commercial seller's or shipper's 
invoice I request that you accept the statement of value or the price 
paid in the form of an invoice submitted below:
Name of shipper_________________________________________________________
address ------------------------
Name of seller__________________________________________________________
address ------------------------;.
Name of consignee_______________________________________________________
address ------------------------.
Name of purchaser_______________________________________________________
address ------------------------.

    The merchandise (has) (has not) been purchased or agreed to be 
purchased by me.
    The prices, or in the case of consigned goods the values, given 
below are true and correct to the best of my knowledge and belief, and 
are based upon: (Check basis with an ``X'')
    (a) The price paid or agreed to be paid (--) as per order dated ----
--------.
    (b) Advices from exporter by letter (--) by cable (--) dated ------
------.
    (c) Comparative values of shipments previously received (--) dated 
------------.
    (d) Knowledge of the market in the country of exportation (--) ----
--------.
    (e) Knowledge of the market in the United States (if U.S. Value) (--
) ------------.
    (f) Advices of the Port Director (--) ------------.
    (g) Other (--) ------------.

[[Page 29]]



----------------------------------------------------------------------------------------------------------------
                                                             D--Unit        E--Total
 A--Case marks     B--Manufacturer's      C--Quantities      purchase       purchase      F--Unit      G--Total
    numbers        item No. symbol or       and full          price          price        foreign      foreign
                         brand             description      (currency)     (currency)      value        value
----------------------------------------------------------------------------------------------------------------
                 .....................  ................  .............  .............  ...........  ...........
                 .....................  ................  .............  .............  ...........  ...........
----------------------------------------------------------------------------------------------------------------
Check which of the charges below are, and which are not included in the prices listed in columns ``D'' and
  ``E'':


------------------------------------------------------------------------
                                                                  Not
                      Amount                         Included   included
------------------------------------------------------------------------
Packing...........................................  .........  .........
Cartage...........................................  .........  .........
Inlandfreight.....................................  .........  .........
Wharfage and loading abroad.......................  .........  .........
Lighterage........................................  .........  .........
Ocean freight.....................................  .........  .........
U.S. duties.......................................  .........  .........
Other charges (identify by name and amount).......  .........  .........
 Total............................................  .........  .........
------------------------------------------------------------------------

    Country of origin ------------------------.
    If any other invoice is received, I will immediately file it with 
the Port Director.
________________________________________________________________________
                                                    (Signature of person
                                                         making invoice)
________________________________________________________________________
                                                   (Title and firm name)

Date____________________________________________________________________

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 85-39, 50 FR 
9612, Mar. 11, 1985]



Sec. 141.86  Contents of invoices and general requirements.

    (a) General information required on the invoice. Each invoice of 
imported merchandise, shall set forth the following information:
    (1) The port of entry to which the merchandise is destined;
    (2) The time when, the place where, and the person by whom and the 
person to whom the merchandise is sold or agreed to be sold, or if to be 
imported otherwise than in pursuance of a purchase, the place from which 
shipped, the time when and the person to whom and the person by whom it 
is shipped;
    (3) A detailed description of the merchandise, including the name by 
which each item is known, the grade or quality, and the marks, numbers, 
and symbols under which sold by the seller or manufacturer to the trade 
in the country of exportation, together with the marks and numbers of 
the packages in which the merchandise is packed;
    (4) The quantities in the weights and measures of the country or 
place from which the merchandise is shipped, or in the weights and 
measures of the United States;
    (5) The purchase price of each item in the currency of the purchase, 
if the merchandise is shipped in pursuance of a purchase or an agreement 
to purchase;
    (6) If the merchandise is shipped otherwise than in pursuance of a 
purchase or an agreement to purchase, the value for each item, in the 
currency in which the transactions are usually made, or, in the absence 
of such value, the price in such currency that the manufacturer, seller, 
shipper, or owner would have received, or was willing to receive, for 
such merchandise if sold in the ordinary course of trade and in the 
usual wholesale quantities in the country of exportation;
    (7) The kind of currency, whether gold, silver, or paper;
    (8) All charges upon the merchandise itemized by name and amount, 
including freight, insurance, commission, cases, containers, coverings, 
and cost of packing; and if not included above, all charges, costs, and 
expenses incurred in bringing the merchandise from alongside the carrier 
at the port of exportation in the country of exportation and placing it 
alongside the carrier at the first United States port of entry. The cost 
of packing, cases, containers, and inland freight to the port of 
exportation need not be itemized by amount if included in the invoice 
price, and so identified. Where the required information does not appear 
on the invoice as originally prepared, it shall be shown on an 
attachment to the invoice;
    (9) All rebates, drawbacks, and bounties, separately itemized, 
allowed upon the exportation of the merchandise;
    (10) The country of origin of the merchandise; and,
    (11) All goods or services furnished for the production of the 
merchandise (e.g., assists such as dies, molds, tools, engineering work) 
not included in the invoice price. However, goods or services furnished 
in the United States are

[[Page 30]]

excluded. Annual reports for goods and services, when approved by the 
port director, will be accepted as proof that the goods or services were 
provided.
    (b) Nonpurchased merchandise shipped by other than manufacturer. 
Each invoice of imported merchandise shipped to a person in the United 
States by a person other than the manufacturer and otherwise than 
pursuant to a purchase or agreement to purchase shall set forth the time 
when, the place where, the person from whom such merchandise was 
purchased, and the price paid therefor in the currency of the purchase, 
stating whether gold, silver, or paper.
    (c) Merchandise sold in transit. If the merchandise is sold on the 
documents while in transit from the port of exportation to the port of 
entry, the original invoice reflecting the transaction under which the 
merchandise actually began its journey to the United States, and the 
resale invoice or a statement of sale showing the price paid for each 
item by the purchaser, shall be filed as part of the entry, entry 
summary, or withdrawal documentation. If the original invoice cannot be 
obtained, a pro forma invoice showing the values and transaction 
reflected by the original invoice shall be filed together with the 
resale invoice or statement.
    (d) Invoice to be in English. The invoice and all attachments shall 
be in the English language, or shall have attached thereto an accurate 
English translation containing adequate information for examination of 
the merchandise and determination of duties.
    (e) Packing list. Each invoice shall state in adequate detail what 
merchandise is contained in each individual package.
    (f) Weights and measures. If the invoice or entry does not disclose 
the weight, gage, or measure of the merchandise which is necessary to 
ascertain duties, the consignee shall pay the expense of weighing, 
gaging, or measuring prior to the release of the merchandise from 
Customs custody.
    (g) Discounts. Each invoice shall set forth in detail, for each 
class or kind of merchandise, every discount from list or other base 
price which has been or may be allowed in fixing each purchase price or 
value.
    (h) Numbering of invoices and pages--(1) Invoices. When more than 
one invoice is included in the same entry, each invoice with its 
attachments shall be numbered consecutively by the importer on the 
bottom of the face of each page, beginning with No. 1.
    (2) Pages. If the invoice or invoices filed with one entry consist 
of more than two pages, each page shall be numbered consecutively by the 
importer on the bottom of the face of each page. The page numbering 
shall begin with No. 1 for the first page of the first invoice and 
continue in a single series of numbers through all the invoices and 
attachments included in one entry.
    (3) Both invoices and pages. When applicable, both the invoice 
number and the page number shall be shown at the bottom of each page. 
For example, if an entry covers one invoice of one page and a second 
invoice of two pages, the numbering at the bottom of the pages shall be 
as follows:

Inv. 1, p. 1.
Inv. 2, p. 2.
Inv. 2, p. 3.

    (i) Information may be on invoice or attached thereto. Any 
information required on an invoice by any provision of this subpart may 
be set forth either on the invoice or on an attachment thereto.
    (j) Name of responsible individual. Each invoice of imported 
merchandise shall identify by name a responsible employee of the 
exporter, who has knowledge, or who can readily obtain knowledge, of the 
transaction.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46820, Aug. 9, 1979; T.D. 85-39, 50 FR 9612, Mar. 11, 1985]



Sec. 141.87  Breakdown on component materials.

    Whenever the classification or appraisement of merchandise depends 
on the component materials, the invoice shall set forth a breakdown 
giving the value, weight, or other necessary measurement of each 
component material in sufficient detail to determine the correct duties.

[[Page 31]]



Sec. 141.88  Computed value.

    When the port director determines that information as to computed 
value is necessary in the appraisement of any class or kind of 
merchandise, he shall so notify the importer, and thereafter invoices of 
such merchandise shall contain a verified statement by the manufacturer 
or producer of computed value as defined in Sec. 402(e), Tariff Act of 
1930, as amended by the Trade Agreements Act of 1979 (19 U.S.C. 
1401a(e)).

[T.D. 87-89, 52 FR 24445, July 1, 1987]



Sec. 141.89  Additional information for certain classes of merchandise.

    (a) Invoices for the following classes of merchandise, classifiable 
under the Harmonized Tariff Schedule of the United States (HTSUS), shall 
set forth the additional information specified: [75-42, 75-239, 78-53, 
83-251, 84-149.]

    Aluminum and alloys of aluminum classifiable under subheadings 
7601.10.60, 7601.20.60, 7601.20.90, or 7602.00.00, HTSUS (T.D. 53092, 
55977, 56143)--Statement of the percentages by weight of any metallic 
element contained in the article.
    Articles manufactured of textile materials, Coated or laminated with 
plastics or rubber, classifiable in Chapter(s) 39, 40, and 42--Include a 
description indicating whether the fabric is coated or laminated on both 
sides, on the exterior surface or on the interior surface.
    Bags manufactured of plastic sheeting and not of a reinforced or 
laminated construction, classified in Chapter 39 or in heading 4202--
Indicate the gauge of the plastic sheeting.
    Ball or roller bearings classifiable under subheading 8482.10.50 
through 8482.80.00, HTSUS (T.D. 68-306)--(1) Type of bearing (i.e., 
whether a ball or roller bearing); (2) If a roller bearing, whether a 
spherical, tapered, cylindrical, needled or other type; (3) Whether a 
combination bearing (i.e., a bearing containing both ball and roller 
bearings, etc.); and (4) If a ball bearing (not including ball bearing 
with integral shafts or parts of ball bearings), whether or not radial, 
the following: (a) outside diameter of each bearing; and (b) whether or 
not a radial bearing (the definition of radial bearing is, for Customs 
purposes, an antifriction bearing primarily designed to support a load 
perpendicular to shaft axis).
    Beads (T.D. 50088, 55977)--(1) The length of the string, if strung; 
(2) The size of the beads expressed in millimeters; (3) The material of 
which the beads are composed, i.e., ivory, glass, imitation pearl, etc.
    Bed linen and Bedspreads--Statement as to whether or not the article 
contains any embroidery, lace, braid, edging, trimming, piping or 
applique work.
    Chemicals--Furnish the use and Chemical Abstracts Service number of 
chemical compounds classified in Chapters 27, 28 and 29, HTSUS.
    Colors, dyes, stains and related products provided for under heading 
3204, HTSUS--The following information is required: (1) Invoice name of 
product; (2) Trade name of product; (3) Identity and percent by weight 
of each component; (4) Color Index number (if none, so state); (5) Color 
Index generic name (if none so state); (6) Chemical Abstracts Service 
number of the active ingredient; (7) Class of merchandise (state whether 
acid type dye, basic dye, disperse dye, fluorescent brightener, soluble 
dye, vat dye, toner or other (describe); (8) Material to which applied 
(name the material for which the color, dye, or toner is primarily 
designed).
    Copper (T.D. 45878, 50158, 55977) articles classifiable under the 
provisions of Chapter 74, HTSUS--A statement of the weight of articles 
of copper, and a statement of percentage of copper content and all other 
elements--by weight--to articles classifiable according to copper 
content.
    Copper ores and concentrates (T.D. 45878, 50158, 55977) classifiable 
in heading 2603, and subheadings 2620.19.60, 2620.20.00, 2620.30.00, and 
heading 7401--Statement of the percentages by weight of the copper 
content and any other metallic elements.
    Cotton fabrics classifiable under the following HTSUS headings: 
5208, 5209, 5210, 5211, and 5212--(1) Marks on shipping packages; (2) 
Numbers on shipping packages; (3) Customer's call number, if any; (4) 
Exact width of the merchandise; (5) Detailed description of the 
merchandise; trade name, if any; whether bleached, unbleached, printed, 
composed of yarns of different color, or dyed; if composed of cotton and 
other materials, state the percentage of each component material by 
weight; (6) Number of single threads per square centimeter (All ply 
yarns must be counted in accordance with the number of single threads 
contained in the yarn; to illustrate: a cloth containing 100 two-ply 
yarns in one square centimeter must be reported as 200 single threads); 
(7) Exact weight per square meter in grams; (8) Average yarn number use 
this formula:

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[GRAPHIC] [TIFF OMITTED] TC14NO91.156

(9) Yarn size or sizes in the warp; (10) Yarn size or sizes in the 
filling; (11) Specify whether the yarns are combed or carded; (12) 
Number of colors or kinds (different yarn sizes or materials) in the 
filling; (13) Specify whether the fabric is napped or not napped; and 
(14) Specify the type of weave, for example, plain, twill, sateen, 
oxford, etc., and (15) Specify the type of machine on which woven: if 
with Jacquard (Jacq), if with Swivel (Swiv), if with Lappet (Lpt.), if 
with Dobby (Dobby).
    Cotton raw See Sec. 151.82 of this chapter for additional 
information required on invoices.
    Cotton waste (T.D. 5044)--(1) The name by which the cotton waste is 
known, such as ``cotton card strips''; ``cotton comber waste''; ``cotton 
lap waste''; ``cotton sliver waste''; ``cotton roving waste''; ``cotton 
fly waste''; etc.; (2) Whether the length of the cotton staple forming 
any cotton card strips covered by the invoice were made is less than 
3.016 centimeters (1\3/16\ inches) or is 3.016 centimeters (1\3/16\ 
inches) or more.
    Earthenware or crockeryware composed of a nonvitrified absorbent 
body (including white granite and semiporcelain earthenware and cream-
colored ware, stoneware, and terra cotta, but not including common 
brown, gray, red, or yellow earthenware), embossed or plain; common 
salt-glazed stoneware; stoneware or earthenware crucibles; Rockingham 
earthenware; china, porcelain, or other vitrified wares, composed of a 
vitrified nonabsorbent body which, when broken, shows a vitrified, 
vitreous, semi-vitrified, or semivitreous fracture; and bisque or parian 
ware (T.D. 53236)--(1) If in sets, the kinds of articles in each set in 
the shipment and the quantity of each kind of article in each set in the 
shipment; (2) The exact maximum diameter, expressed in centimeters, of 
each size of all plates in the shipment; (3) The unit value for each 
style and size of plate, cup, saucer, or other separate piece in the 
shipment.
    Fish or fish livers (T.D. 50725, 49640, 55977) imported in airtight 
containers classifiable under Chapter 3, HTSUS--(1) Statement whether 
the articles contain an oil, fat, or grease which has had a separate 
existence as an oil, fat, or grease, (2) The name and quantity of any 
such oil, fat, or grease.
    Footwear, classifiable in headings 6401 through 6405 of the HTSUS--
    1. Manufacturer's style number.
    2. Importer's style and/or stock number.
    3. Percent by area of external surface area of upper (excluding 
reinforcements and accessories) which is:

Leather a. --------%
Composition Leather b. --------%
Rubber and/or plastics c. --------%
Textile materials d. --------%
Other (give separate e. --------%
Percent for each f. --------%
Type of material)

    4. Percent by area of external Surface area of outersole (excluding 
reinforcements and accessories) which is:

Leather a. --------%
Composition Leather b. --------%
Rubber and/or plastics c. --------%
Textile materials d. --------%
Other (give separate e. --------%
Percent for each f. --------%
Type of material)

    You may skip this section if you choose to answer all questions A 
through Z below.
    I. If 3(a) is larger than any other percent in 3 and if 4(a) is 
larger than any other percent in 4, answer questions F, G, L, M, O, Q, 
R, S, and X.
    II. If 3(a) is larger than any other percent in 3 and if 4(c) is 
larger than any other percent in 4, answer questions F, G, L, M, N, O, 
Q, S and X.
    III. If 3(a) plus 3(b) is larger than any single percent in 3 and if 
4(d), 4(e) or 4(f) is larger than any other percent in 4, stop.
    IV. If 3(c) is larger than any other percent in 3 and if 4(a) or 
4(b) is larger than any other percent in 4, stop.
    V. If 3(c) is larger than any other percent in 3 and if 4(c) is 
larger than any other percent in 4, answer questions B, E, F, G, H, J, 
K, L, M, N, O, P, T and W.
    VI. If 3(d) is larger than any other percent in 3 and if 4(a) plus 
4(b) is larger than any single percent in 4, answer questions C and D.
    VII. If 3(d) is larger than any other percent in 3 and if 4(c) is 
larger than any other percent in 4, answer questions A, C, J, K, M, N, P 
and T.
    VIII. If 3(d) is larger than any other percent in 3 and if 4(d) is 
larger than any other percent in 4, answer questions U, Y and Z.
    IX. If the article is made of paper, answer questions V and Z.
    If the article does not meet any of conditions I through IX above, 
answer all questions A through Z, below.
________________________________________________________________________
________________________________________________________________________
A Percent of external surface area of upper (including leather 
reinforcements and accessories)
Which is leather ----------%

[[Page 33]]

B Percent by area of external surface area of upper (including all 
reinforcements and accessories).
Which is rubber and/or plastics ----------%
C Percent by weight of rubber and/or plastics is ----------%
D Percent by weight of textile materials plus rubber and/or plastics is 
----------%
E Is it waterproof?
F Does it have a protective metal toe cap?
G Will it cover the wearer's ankle bone?
H Will it cover the wearer's knee cap?
I [Reserved.]
J Is it designed to protect against water, oil, grease, or chemicals, or 
cold or inclement weather?
K Is it a slip-on?
L Is it a downhill or cross-country skiboot?
M Is it serious sports footwear other than skiboots? (Chapter 64 
subheading note defines sports footwear.)
N Is it a tennis, basketball, gym, or training shoe or the like?
O Is it made on a base or platform of wood?
P Does it have open toes or open heels?
Q Is it made by the (lipped insole) welt construction?
R Is it made by the turned construction?
S Is it worn exclusively by men, boys or youths?
T Is it made by an exclusively adhesive construction?
U Are the fibers of the upper, by weight, predominately vegetable 
fibers?
V Is it disposable, i.e., intended for one-time use?
W Is it a ``Zori''?
X Is the leather in the upper pigskin?
Y Are the sole and upper made of woolfelt?
Z Is there a line of demarcation between the outer sole and upper?

    The information requested above may be furnished on CF 5523 or other 
appropriate format by the exporter, manufacturer or shipper.
    Also, the following information must be furnished by the importer or 
his authorized agent if classification is claimed under one of the 
subheadings below:
    If subheading 6401.99.80, 6402.19.10, 6402.30.30, 6402.91.40, 
6402.99.15, 6402.99.30, 6406.11.40, 6404.11.60, 6404.19.35, 6404.19.40, 
or 6404.19.60 is claimed:
    Does the shoe have a foxing or foxing-like band? If so, state its 
materials(s).
    Does the sole overlap the upper other than just at the front of the 
toe and/or at the back of the heel?
    Definitions for some of the terms used in questions A to Z above: 
For the purpose of this section, the following terms have the 
approximate definitions below. If either a more complete definition or a 
decision as to its application to a particular article is needed, the 
maker or importer of record (or the agent of either) should contact 
Customs prior to entry of the article.
    a. In an exclusively adhesive construction, all of the piece(s) of 
the bottom would separate from the upper or from each other if all 
adhesives, cements, and glues were dissolved. It includes shoes in which 
the pieces of the upper are stitched to each other, but not to any part 
of the bottom. Examples include:
    1. Vulcanized construction footwear;
    2. Simultaneous molded construction footwear;
    3. Molded footwear in which the upper and the bottom are one piece 
of molded rubber or plastic, and
    4. Footwear in which staples, rivets, stitching, or any of the 
methods above are either primary or just extra or auxiliary, even though 
adhesive is a major part of the reason the bottom will not separate from 
the upper.
    b. Composition leather is made by binding together leather fibers or 
small pieces of natural leather. It does not include imitation leathers 
not based on natural leather.
    c. Leather is the tanned skin of any animal from which the fur or 
hair has been removed. Tanned skins coated or laminated with rubber and/
or plastics are ``leather'' only if the leather gives the material its 
essential character.
    d. A line of demarcation exists if one can indicate where the sole 
ends and the upper begins. For example, knit booties do not normally 
have a line of demarcation.
    e. Men's, boys' and youths' sizes cover footwear of American youths 
sizes 11\1/2\ and larger for males, and do not include footwear commonly 
worn by both sexes. If more than 4% of the shoes sold in a given size 
will be worn by females, that size is ``commonly worn by both sexes.''
    f. Footwear is designed to protect against water, oil or cold or 
inclement weather only if it is substantially more of a protection 
against those items than the usual shoes of that type. For example, 
leather oxfords will clearly keep one's feet warmer and drier than going 
barefoot, but they are not a protection in this sense. On the other hand 
the snow-jobber is the protective version of the nonprotective jogging 
shoe.
    g. Rubber and/or plastics includes any textile material visibly 
coated (or covered) externally with one or both of those materials.
    h. Slip-on includes:
    1. A boot which must be pulled on.
    2. Footwear with elastic cores which must be stretched to get it on, 
but not bootwear having a separate piece of elasticized fabric which 
forms a full circle around the foot or ankle.
    i. Sports footwear includes only:
    (1) Footwear which is designed for a sporting activity and has, or 
has provision for, the attachment of spikes, sprigs, cleats, stops, 
clips, bars or the like;

[[Page 34]]

    (2) Skating boots (without skates attached), ski boots and cross-
country ski footwear, wrestling boots, boxing boots and cycling shoes.
    j. Tennis shoes, basketball shoes, gym shoes, training shoes and the 
like covers athletic footwear other than sports footwear, whether or not 
principally used for such athletic games or purposes.
    k. Textile materials are made from cotton, other vegetable fibers, 
wool, hair, silk or man-made fibers. Note: Cork, wood carboard and 
leather are not textile materials.
    l. In turned construction, the upper is stitched to the leather sole 
wrong side out and the shoe is then turned right side out.
    m. Vegetable fibers include cotton, flax and ramie, but do not 
include either rayon or plaiting materials such as rattan or wood 
strips.
    n. Waterproof footwear includes footwear designed to protect against 
penetration by water or other liquids, whether or not such footwear is 
primarily designed for such purposes.
    o. Welt footwear means footwear constructed with a welt, which 
extends around the edge of the outer sole, and in which the welt and 
shoe upper are sewed to a lip on the surface of the insole, and the 
outer sole is sewed or cemented to the welt.
    p. A zori has an upper consisting only of straps or thongs of molded 
rubber or plastic. This upper is assembled to a foamed rubber or plastic 
sole by means of plugs.
    Fur products and furs (T.D. 53064)--(1) Name or names (as set forth 
in the Fur Products Name Guide (16 CFR 301.0) of the animal or animals 
that produced the fur, and such qualifying statements as may be required 
pursuant to Sec. 7(c) of the Fur Products Labeling Act (15 U.S.C. 
69e(c)); (2) A statement that the fur product contains or is composed of 
used fur, when such is the fact; (3) A statement that fur product 
contains or is composed of bleached, dyed, or otherwise artificially 
colored fur, when such is the fact; (4) A statement that the fur product 
is composed wholly or in substantial part of paws, tails, bellies, or 
waste fur, when such is the fact; (5) Name and address of the 
manufacturer of the fur product; (6) Name of the country of origin of 
the furs or those contained in the fur product.
    Glassware and other glass products (T.D. 53079, 55977)--Classifiable 
under Heading 7013 HTSUS--Statement of the separate value of each 
component article in the set.
    Gloves-- State if the merchandise has a plastics or a rubber 
exterior. (See Chapter 59, Note 2(a)(3)).
    Grain or grain and screenings (T.D. 51284)--Statement on Customs 
invoices for cultivated grain or grain and screenings that no screenings 
are included with the grain, or, if there are screenings included, the 
percentage of the shipment which consists of screenings commingled with 
the principal grain.
    Handkerchiefs--(1) State the exact dimensions (length and width) of 
the merchandise; (2) If of cotton indicate whether the handkerchief is 
hemmed and whether it contains lace or embroidery.
    Hats or headgear--(1) If classifiable under subheading 6502.00.40 or 
6502.00.60, HTSUS--Statement as to whether or not the article has been 
bleached or colored; (2) If classifiable under subheadings 6502.00.20 
through 6502.00.60 or 6504.00.30 through 6504.00.90, HTSUS--Statement as 
to whether or not the article is sewed or not sewed, exclusive of any 
ornamentation or trimming.
    Hosiery--(1) Indicate whether a single yarn measures less than 67 
decitex. (2) Indicate whether the hosiery is full length, knee length, 
or less than knee length. (3) Indicate whether it contains lace or net.
    Iron or steel classifiable in Chapter 72 or headings 7301 to 7307, 
HTSUS (T.D. 53092, 55977)--Statement of the percentages by weight or 
carbon and any metallic elements contained in the articles, in the form 
of a mill analysis or mill test certificate.
    Iron oxide (T.D. 49989, 50107)--For iron oxide to which a reduced 
rate of duty is applicable, a statement of the method of preparation of 
the oxide, together with the patent number, if any.
    Machines, equipment and apparatus-- Chapters 84 and 85, HTSUS--A 
statement as to the use or method of operation of each type of machine.
    Machine parts (T.D. 51616)--Statement specifying the kind of machine 
for which the parts are intended, or if this is not known to the 
shipper, the kinds of machines for which the parts are suitable.
    Machine tools: (1) Headings 8456 through 8462--machine tools covered 
by these headings equipped with a CNC (Computer Numerical Control) or 
the facings (electrical interface) for a CNC must state so; (2) Headings 
8458 through 8463--machine tools covered by these headings if used or 
rebuilt must state so; (3) Subheading 8456.30.10--EDM: (Electical 
Discharge Machines) if a Traveling Wire (Wire Cut) type must state so. 
Wire EDM's use a copper or brass wire for the electrode; (4) Subheading 
8457.10.00--Machining Centers. Must state whether or not they have an 
ATC (Automatic Tool Changer). Vertical spindle maching centers with an 
ATC must also indicate the Y-travel; (5) Subheading 8458.11.0030 through 
8458.11.0090--horizontal lathes: numerically controlled. Must indicate 
the rated HP (or KW rating) of the main spindle motor. Use the 
continuous rather than the 30 minute rating.
    Madeira embroideries (T.D. 49988)--(1) With respect to the materials 
used, furnish: (a)

[[Page 35]]

country of production; (b) width of the material in the piece; (c) name 
of the manufacturer; (d) kind of material, indicating manufacturer's 
quality number; (e) landed cost of the material used in each item; (f) 
date of the order; (g) date of the invoice; (h) invoice unit value in 
the currency of the purchase; (i) discount from purchase price allowed, 
if any; (2) With respect to the finished embroidered articles, furnish: 
(a) manufacturers's name, design number, and quality number; (b) 
importer's design number, if any; (c) finished size; (d) number of 
embroidery points per unit of quantity; (e) total for overhead and 
profit added in arriving at the price or value of the merchandise 
covered by the invoice.
    Motion-picture films--(1) Statement of footage, title, and subject 
matter of each film; (2) Declaration of shipper, cameraman, or other 
person with knowledge of the facts identifying the films with the 
invoice and stating that the basic films were to the best of his 
knowledge and belief exposed abroad and returned for use as newsreel; 
(3) Declaration of importer that he believes the films entered by him 
are the ones covered by the preceding declaration and that the films are 
intended for use as newsreel.
    Paper classifiable in Chapter 48--Invoices covering paper shall 
contain the following information, or will be accompanied by 
specification sheets containing such information:
    (1) Weight of paper in grams per square meter; (2) Thickness, in 
micrometers (microns); (3) If imported in rectangular sheets, length and 
width of sheets, in cm; (4) if imported in strips, or rolls, the width, 
in cm. In the case of rolls, the diameter of rolls in cm; (5) Whether 
the paper is coated or impregnated, and with what materials; (6) Weight 
of coating, in grams per square meter; (7) Percentage by weight of the 
total fiber content consisting of wood fibers obtained by a mechanical 
process, chemical sulfate or soda process, chemical sulfite process, or 
semi-chemical process, as appropriate; (8) Commercial designation, as 
``Writing'', ``Cover'', ``Drawing'', ``Bristol'', ``Newsprint'', etc.; 
(9) Ash content; (10) Color; (11) Glaze, or finish; (12) Mullen bursting 
strength, and Mullen index; (13) Stretch factor, in machine direction 
and in cross direction; (14) Tear and tensile readings; in machine 
direction, in cross direction, and in machine direction plus cross 
direction; (15) Identification of fibers as ``hardwood'' where 
appropriate; (16) Crush resistance; (17) Brightness; (18) Smoothness; 
(19) If bleached, whether bleached uniformly throughout the mass; (20) 
Whether embossed, perforated, creped or crinkled.
    Plastic plates, sheets, film, foil and strip of headings 3920 and 
3921--(1) Statement as to whether the plastic is cellular or 
noncellular; (2) Specification of the type of plastic; (3) Indication of 
whether or not flexible and whether combined with textile or other 
material.
    Printed matter classificable in Chapter 49--Printed matter entered 
in the following headings shall have, on or with the invoices covering 
such matter, the following information: (1) Heading 4901--(a) Whether 
the books are: dictionaries, encyclopedias, textbooks, bound newspapers 
or journals or periodicals, directories, bibles or other prayer books, 
technical, scientific or professional books, art or pictorial books, or 
``other'' books; (b) if ``other'' books, whether hardbound or 
paperbound; (c) if ``other'' books, paperbound, other than ``rack 
size'': number of pages (excluding covers). (2) Heading 4902--(a) 
Whether the journal or periodical appears at least four times a week. If 
the journal or periodical appears other than at least four times a week, 
whether it is a newspaper supplement printed by a gravure process, is it 
a newspaper, business or professional journal or periodical, or other 
than these; (3) Heading 4904--Whether the printed or manuscript music is 
sheet music, not bound (except by stapling or folding); (4) Heading 
4905--(a) Whether globes or not; (b) if not globes, whether in book form 
or not; (c) in any case, whether or not in relief; (5) Heading 4908--
Whether or not vitrifiable; (6) Heading 4904--Whether post cards, 
greeting cards, or other; (7) Heading 4910--(a) Whether or not printed 
on paper by a lithographic process; (b) if printed on paper by a 
lithographic process, the thickness of the paper, in mm; (8) Subheading 
4911.91--(a) Whether or not printed over 20 years at time of 
importation; (b) if printed not over 20 years at time of importation, 
whether suitable for use in the production of articles of heading 4901; 
(c) if not printed over 20 years at time of importation, and not 
suitable for use in the production of articles of heading 4901, whether 
the merchandise is lithographs on paper or paperboard; (d) if 
lithographs on paper or paperboard, under the terms of the immediately 
preceding description, thickness of the paper or paperboard, and whether 
or not posters; (e) in any case, whether or not posters; (f) in any 
case, whether or not photographic negatives or positives on transparent 
bases; (g) Subheading 4911.99--If not carnets, or parts thereof, in 
English or French, whether or not printed on paper in whole or in part 
by a lithographic process.
    Pulp classifiable in Chapter 47--(1) Invoices covering chemical 
woodpulp, dissolving grades, in Heading 4702 shall state the insoluble 
fraction (as a percentage) after 1 hour in a caustic soda solution 
containing 18% sodium hydroxide (NaOH) at 20 [deg]C; (2) Subheading 
4702.00.0020--Pulp entered under this subheading shall in addition 
contain on or with the invoice the ash content as a percentage to the 
third decimal point, by weight.

[[Page 36]]

    Refrigeration equipment (1) Refrigerator-freezers classifiable under 
subheading 8418.10.00 and (2) refrigerators classifiable under 
subheading 8418.21.00--(a) Statement as to whether they are compression 
or absorption type; (b) Statement of their refrigerated volume in 
liters. (3) Freezers classifiable under subheading 8418.30.00 and 
8418.40.00--Statement as to whether they are chest or upright type. (4) 
Liquid chilling refrigerating units classifiable under subheadings 
8418.69.0045 through 8418.69.0060--Statement as to whether they are 
centrifugal open-type, centrifugal hermetic-type, absorption-type or 
reciprocating type.
    Rolling mills--Subheadings 8455.30.0005 through 8455.30.0085. Rolls 
for rolling mills: Indicate the composition of the roll--gray iron, cast 
steel or other--and the weight of each roll.
    Rubber products of Chapter 40--(1) Statement as to whether combined 
with textile or other material; (2) Statement whether the rubber is 
cellular or noncellular, unvulcanized or vulcanized, and if vulcanized, 
whether hard rubber or other than hard rubber.
    Screenings or scalpings of grains or seeds (T.D. 51096)--(1) Whether 
the commodity is the product of a screening process; (2) If so, whether 
any cultivated grains have been added to such commodity; (3) If any such 
grains have been added, the kind and percentage of each.
    Textile fiber products (T.D. 55095)--(1) The constituent fiber or 
combination of fibers in the textile fiber product, designating with 
equal prominence each natural or manufactured fiber in the textile fiber 
product by its generic name in the order of predominance by the weight 
thereof if the weight of such fiber is 5 per centum or more of the total 
fiber weight of the product; (2) The percentage of each fiber present, 
by weight, in the total fiber content of the textile fiber product; (3) 
The name, or other identification issued and registered by the Federal 
Trade Commission, of the manufacturer of the product or one or more 
persons subject to Sec. 3 of the Textile Fiber Products Identification 
Act (15 U.S.C. 70a) with respect to such product; (4) The name of the 
country where processed or manufactured. See also ``Wearing Apparel'' 
below.
    Tires and tubes for tires, of rubber or plastics--(1) Specify the 
kind of vehicle for which the tire is intended, i.e., airplane, bicycle, 
passenger car, on-the-highway light or heavy truck or bus, motorcycle; 
(2) If designed for tractors provided for in subheading 8701.90.10 or 
for agricultural or horticultural machinery or implements provided for 
in Chapter 84 or in subheading 8716.80.10, designate whether the tire is 
new, recapped, or used; pneumatic or solid; (3) Indicate whether the 
tube is designed for tires provided for in subheading 4011.91.10, 
4011.99.10, 4012.10.20, or 4012.20.20.
    Tobacco (including tobacco in its natural state) (T.D. 44854, 
45871)--(1) Specify in detail the character of the tobacco in each bale 
by giving (a) country and province of origin, (b) year of production, 
(c) grade or grades in each bale, (d) number of carrots or pounds of 
each grade if more than one grade is packed in a bale, (e) the time 
when, place where, and person from whom purchased, (f) price paid or to 
be paid for each bale or package, or price for the vega or lot if 
purchased in bulk, or if obtained otherwise than by purchase, state the 
actual market value per bale; (2) If an invoice covers or includes bales 
of tobacco which are part of a vega or lot purchased in bulk, the 
invoice must contain or be accompanied by a full description of the vega 
or lot purchased; or if such description has been furnished with a 
previous importation, the date and identity of such shipment; (3) 
Packages or bales containing only filler leaf shall be invoiced as 
filler; when containing filler and wrapper but not more than 35 percent 
of wrapper, they shall be invoiced as mixed; and when containing more 
than 35 percent of wrapper, they shall be invoiced as wrapper.
    Watches and watch movements classifiable in Chapter 91 of the 
HTSUS--For all commercial shipments of such articles, there shall be 
required to be shown on the invoice, or on a separate sheet attached to 
and constituting a part of the invoice, such information as will reflect 
with respect to each group, type, or model, the following:
    (A) For watches, a thorough description of the composition of the 
watch cases, the bracelets, bands or straps; the commercial description 
(ebauche caliber number, ligne size and number of jewels) of the 
movements contained in the watches; and the type of battery 
(manufacturer's name and reference number), if the watch is battery-
operated;
    (B) For watch movements, the commercial description (ebauche caliber 
number, ligne size and number of jewels). If battery-operated, the type 
of battery (manufacturer's name and reference number);
    (C) The name of the manufacturer of the exported watch movements and 
the name of the country in which the movements were manufactured.
    Wearing apparel--(1) All invoices for textile wearing apparel should 
indicate a component material breakdown in percentages by weight for all 
component fibers present in the entire garment, as well as separate 
breakdowns of the fibers in the (outer) shell (exclusive of linings, 
cuffs, waistbands, collars and other trimmings) and in the lining. (2) 
For garments which are constructed of more than one component or 
material (combinations of knit and not knit fabric or combinations of 
knit and/or not knit fabric with leather, fur, plastic including vinyl, 
etc.),

[[Page 37]]

the invoice must show a fiber breakdown in percentages by weight for 
each separate textile material in the garment and a breakdown in 
percentages by weight for each nontextile material for the entire 
garment; (3) For woven garments--Indicate whether the fabric is yarn 
dyed and whether there are ``two or more colors in the warp and/or 
filling''; (4) For all-white T-shirts and singlets--Indicate whether or 
not the garment contains pockets, trim, or embroidery; (5) For 
mufflers--State the exact dimensions (length and width) of the 
merchandise.
    Wood products--(1) Wood sawn or chipped lengthwise, sliced or 
peeled, whether or not planed, sanded or finger-jointed, of a thickness 
exceeding 6 mm (lumber), classifiable under Chapter 44, heading 4407, 
HTSUS, and wood continuously shaped along any of its edges or faces, 
whether or not planed, sanded or finger-jointed: Coniferous: Subheading 
4409.10.90 and Nonconiferous: Subheading 4409.20.90, HTSUS, and dutiable 
on the basis of cubic meters--
    Quantity in cubic meters (m) before dressing; (2) Fiberboard of wood 
or other ligneous materials whether or not bonded with resins or other 
organic substances, under Chapter 44, Heading 4411, HTSUS, and 
classifiable according to its density--Density in grams per cubic 
centimeter (cm); (3) Plywood consisting solely of sheets of wood, 
classifiable under Chapter 44, Subheading 4412.11, 4412.12, and 4412.19, 
HTSUS, and classifiable according to the thickness of the wood sheets--
Thickness of each ply in millimeter (mm).
    Wool and hair--See Sec. 151.62 of this chapter for additional 
information required on invoices.
    Wool products, except carpets, rugs, mats, and upholsteries, and 
wool products made more than 20 years before importation (T.D. 50388, 
51019)--(1) The percentage of the total fiber weight of the wool 
product, exclusive of ornamentation not exceeding 5 per centum of said 
total fiber weight, of (a) wool; (b) reprocessed wool; (c) reused wool; 
(d) each fiber other than wool if said percentage by weight of such 
fiber is 5 per centum or more; and (e) the aggregate of all other 
fibers; (2) the maximum percentage of the total weight of the wool 
product, of any nonfibrous loading, filling, or adulterating matter; and 
(3) the name of the manufacturer of the wool product, except when such 
product consists of mixed wastes, residues, and similar merchandise 
obtained from several suppliers or unknown sources.
    Woven fabric of man-made fibers in headings 5407, 5408, 5512, 5513, 
5514, 5515, 5516--
    (1) State the exact width of the fabric;
    (2) Provide a detailed description of the merchandise, (trade name, 
if any);
    (3) Indicate whether bleached, unbleached, dyed, of yarns of 
different colors and/or printed;
    (4) If composed of more than one material, list percentage by weight 
in each;
    (5) Identify the man-made fibers as artificial or synthetic, 
filament or staple, and state whether the yarns are high tenacity. 
Specify the number of turns per meter in each yarn;
    (6) Specify yarn sizes in warp and filling;
    (7) Specify how the fabric is woven (plain weave, twill, sateen, 
dobby, jacquard, swivel, lappet, etc.);
    (8) Indicate the number of single threads per square centimeter in 
both warp and filling;
    (9) Supply the weight per square meter in grams;
    (10) Provide the average yarn number using this formula:
    [GRAPHIC] [TIFF OMITTED] TC14NO91.157
    
    (11) For spun yarns, specify whether combed or carded.
    (12) For filament yarns, specify whether textured or not textured.
    Yarns--(1) All yarn invoices should show: (a) Fiber content by 
weight; (b) whether single or plied; (c) whether or not put up for 
retail sale (See Section XI, Note 4, HTSUS); (d) whether or not intended 
for use as sewing thread;
    (2) If chief weight of silk--show whether spun or filament;
    (3) If chief weight of cotton--show:
    (a) Whether combed or uncombed
    (b) Metric number (mn)
    (c) Whether bleached and/or mercerized;
    (4) If chief weight of man-made fiber--show:
    (a) Whether filament, or spun, or a combination of filament and spun
    (b) If a combination of filament and spun--give percentage of 
filament and spun by weight.
    (5) If chief weight of filament man-made fiber--show:
    (a) Whether high tenacity (See Section XI, note 6 HTSUS).
    (b) Whether monofilament, multifilament or strip
    (c) Whether texturized
    (d) Yarn number in decitex
    (e) Number of turns per meter

[[Page 38]]

    (f) For monofilaments--show cross sectional dimension in millimeters
    (g) For strips--show the width of the strip in millimeters (measure 
in folded or twisted condition if so imported).

[T.D. 73-175, 38 FR 17447, July 2, 1973]

    Editorial Note: For Federal Register citations affecting Sec. 
141.89, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 141.90  Notation of tariff classification and value on invoice.

    (a) [Reserved]
    (b) Classification and rate of duty. The appropriate subheading of 
the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), 
and the rate of duty shall be noted by the importer in the left-hand 
portion of the invoice, next to the articles to which they apply.
    (c) Value. The importer shall show in clear detail on the invoice or 
on an attached statement the computation of all deductions from total 
invoice value, such as nondutiable charges, and all additions to invoice 
value which have been made to arrive at the aggregate entered value. In 
addition, the entered unit value for each article on the invoice shall 
be shown where it is different from the invoiced unit value.
    (d) Importer's notations in blue or black ink. All notations made on 
the invoice by the importer or broker shall be in blue or black ink.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51262, Dec. 21, 1988; T.D. 99-64, 64 FR 43266, Aug. 10, 1999]



Sec. 141.91  Entry without required invoice.

    If a required invoice is not available in proper form at the time 
the entry or entry summary documentation is filed and a waiver is not 
granted in accordance with Sec. 141.92, the entry or entry summary 
documentation shall be accepted only under the following conditions:
    (a) The port director is satisfied that the failure to produce the 
required invoice is due to a cause beyond the control of the importer;
    (b) The importer files:
    (1) A written declaration that he is unable to produce such invoice, 
and
    (2) Any seller's or shipper's invoices available to him or, if none 
are available, a pro forma invoice in accordance with Sec. 141.85;
    (c) The invoices and other documents contain information adequate 
for the examination of merchandise, the determination of estimated 
duties, if any, and statistical purposes; and
    (d) The importer files a bond on Customs Form 301, containing the 
bond conditions set forth in Sec. 113.62 of this chapter, in an amount 
equal to one and one-half the invoice value of the merchandise, for the 
production of the required invoice, which must be produced within 120 
days after the date of the filing of the entry summary (or the entry, if 
there is no entry summary) documentation, unless the invoice is needed 
for statistical purposes. If needed for statistical purposes, the 
invoice shall be produced within 50 days after the date of the entry 
summary (or the entry, if there is no entry summary) is required to be 
filed, unless a reasonable extension of time is granted by the port 
director for good cause shown.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46821, Aug. 9, 1979; T.D. 84-213, 49 FR 41184, Oct. 19, 1984; T.D. 
85-167, 50 FR 40363, Oct. 3, 1985; T.D. 93-66, 58 FR 44130, Aug. 19, 
1993]



Sec. 141.92  Waiver of invoice requirements.

    (a) When waiver may be granted. The port director may waive 
production of a required invoice when he is satisfied that either:
    (1) The importer cannot by reason of conditions beyond his control 
furnish a complete and accurate invoice; or
    (2) The examination of merchandise, final determination of duties, 
and collection of statistics can be effected properly without the 
production of the required invoice.
    (b) Documents to be filed by importer. As a condition to the 
granting of a waiver, the importer shall file the following documents 
with the entry:
    (1) Any invoice or invoices received from the seller or shipper;
    (2) A statement pointing out in exact detail any inaccuracies, 
omissions, or other defects in such invoice or invoices;

[[Page 39]]

    (3) An executed pro forma invoice in accordance with Sec. 141.85; 
and
    (4) Any other information required by the port director for either 
appraisement or classification of the merchandise, or for statistical 
purposes.
    (c) Satisfaction of bond liability. The liability under the bond on 
Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter for the production of a correct invoice shall be 
deemed satisfied when a waiver has been granted pursuant to this 
section.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-53, 43 FR 
6070, Feb. 13, 1978; T.D. 79-221, 44 FR 46821, Aug. 9, 1979; T.D. 84-
213, 49 FR 41184, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984; T.D. 93-66, 
58 FR 44130, Aug. 19, 1993]



                  Subpart G_Deposit of Estimated Duties



Sec. 141.101  Time of deposit.

    Estimated duties shall either be deposited with the Customs officer 
designated to receive the duties at the time of the filing of the entry 
documentation or the entry summary documentation when it serves as both 
the entry and entry summary, or be transmitted to Customs according to 
the statement processing method as described in Sec. 24.25 of this 
chapter, except in the following cases:
    (a) Merchandise released under entry documentation. In the case of 
merchandise released under the entry documentation listed in Sec. 142.3 
of this chapter before filing of the entry summary, deposit of estimated 
duties shall be made at the time the entry summary is filed unless the 
merchandise is entered for warehouse. If the merchandise is entered for 
warehouse, estimated duties shall be deposited in accordance with 
paragraph (b) of this section.
    (b) Warehouse entry. In the case of merchandise entered for 
warehouse, deposit of estimated duties shall be made at the time the 
withdrawal for consumption is presented.
    (c) Informal mail entry. In the case of merchandise entered under an 
informal mail entry, duties shall be paid to the postal employee at the 
time he delivers the merchandise to the addressee (see part 145 of this 
chapter).
    (d) Appraisement entries. In the case of merchandise entered under 
an appraisement entry, deposit of estimated duties shall be made 
immediately after notification by the appropriate Customs officer of the 
amount of duties due.
    (e) Entry for transportation or under bond. No deposit of estimated 
duties is applicable in the case of merchandise entered for 
transportation or temporarily imported under bond, entered for permanent 
exhibition under bond, entered for a trade fair under bond or entered 
under bond for similar reasons.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46821, Aug. 9, 1979; T.D. 84-213, 49 FR 41184, Oct. 19, 1984; 49 FR 
44867, Nov. 9, 1984; T.D. 89-104, 54 FR 50498, Dec. 7, 1989]



Sec. 141.102  When deposit of estimated duties, estimated taxes, or both 
not required.

    Entry or withdrawal for consumption in the following situations may 
be made without depositing the estimated Customs duties, or estimated 
taxes, or both, as specifically noted:
    (a) Cigars and cigarettes. A qualified dealer or manufacturer may 
enter or withdraw for consumption cigars, cigarettes, and cigarette 
papers and tubes without payment of internal revenue tax in accordance 
with Sec. 11.2(a) of this chapter.
    (b) Bulk distilled spirits transferred to the bonded premises of a 
distilled spirits plant. An importer may transfer distilled spirits in 
bulk to the bonded premises of a distilled spirits plant, without the 
payment of tax, under the provisions of section 5232(a), Internal 
Revenue Code of 1986 (26 U.S.C. 5232(a)), and the regulations of the 
Bureau of Alcohol, Tobacco and Firearms (27 CFR part 251).
    (c) Deferral of payment of taxes on alcoholic beverages. An importer 
may pay on a semimonthly basis the estimated internal revenue taxes on 
all the alcoholic beverages entered or withdrawn for consumption during 
that period, under the procedures set forth in Sec. 24.4 of this 
chapter.
    (d) Government entries. If a shipment is entered or withdrawn for 
consumption by a U.S. Government department

[[Page 40]]

or agency, or an authorized representative thereof, no deposit of 
estimated Customs duties or taxes shall be required if a stipulation is 
furnished in lieu of the bond. The proper department or agency will then 
be billed after liquidation of the entry for any duties or charges due. 
The stipulation shall be in the following form:

I, ------------------------------------ (title), a duly authorized 
representative of the___________________________________________________
________________________________________________________________________
(name of U.S. Government department or agency) stipulate and agree on 
behalf of such department or agency that all applicable provisions of 
the Tariff Act of 1930, as amended, and the regulations thereunder, and 
of all other laws and regulations, relating to__________________________
________________________________________________________________________
 (type of entry)
________________________________________________________________________
entry No. ------------, of ------------ (date) will be observed and 
complied with in all respects.
________________________________________________________________________
                                                             (Signature)

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978; T.D. 84-213, 49 FR 41184, Oct. 19, 1984; T.D. 
89-65, 54 FR 28414, July 6, 1989; T.D. 92-31, 57 FR 10989, Apr. 1, 1992]



Sec. 141.103  Amount to be deposited.

    Estimated duties shall be deposited in an amount to sufficiently 
cover the prospective duties on each item being entered or withdrawn.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 99-64, 64 FR 
43266, Aug. 10, 1999]



Sec. 141.104  Computation of duties.

    In computing estimated duties, fractional parts of dollars and 
quantities shall be rounded off in accordance with Sec. 159.3 of this 
chapter.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 99-64, 64 FR 
43266, Aug. 10, 1999]



Sec. 141.105  Voluntary deposit of additional duties.

    If either the importer of record or the actual owner whose 
declaration and superseding bond have been filed in accordance with 
Sec. 141.20 desires, he may estimate, on the basis of information 
contained in the entry papers or obtainable from the port director, the 
probable amount of unpaid duties which will be found due on the entire 
entry and deposit them in whole or in part with the port director. The 
deposit shall be tendered in writing in the following form in the number 
of copies required for the purposes of local administration, and an 
official receipt shall be given for the deposit:

                                          Date ------------------------.
To the Port Director,___________________________________________________
------------------------------------.
    Tender is hereby voluntarily made of $------------ as a supplemental 
deposit of estimated duties and taxes on -------- entry No. ------------
, dated ------------, in the name of ------------. Please provide an 
official receipt.
________________________________________________________________________
                                  (Importer of record) or (actual owner)
________________________________________________________________________
 (Street address)
________________________________________________________________________
(City) (State)



                    Subpart H_Release of Merchandise



Sec. 141.111  Carrier's release order.

    (a) When required. Except where release is made directly to the 
carrier in accordance with Sec. 141.11(b), no merchandise shall be 
released from Customs custody until a release order has been executed by 
the carrier, or, in the case of merchandise in a bonded warehouse, by 
the warehouse proprietor.
    (b) Form of release. The release order may be executed on any of the 
following documents:
    (1) [Reserved]
    (2) The official entry form;
    (3) A combined carrier's certificate and release order issued in 
accordance with Sec. 141.11(a)(4); or
    (4) If a certified duplicate bill of lading or air waybill is used 
for entry purposes in accordance with Sec. 141.11(a)(3), the carrier's 
release order may be endorsed thereon in substantially the following 
form:

    In accordance with the provisions of section 484(j), Tariff Act of 
1930, authority is hereby given to release the articles covered by this 
certified duplicate bill of lading or air waybill to: ------------------
------.

    (c) Blanket release order. Merchandise may be released to the person 
named in the bill of lading or air waybill in the absence of a specific 
release order from

[[Page 41]]

the carrier, if the carrier concerned has filed a blanket order 
authorizing release to the owner or consignee in such cases. A carrier's 
certificate in the form shown in Sec. 141.11(a)(4), may be modified and 
executed to make it a blanket release order for the shipments covered by 
a blanket carrier's release order under Sec. 141.11(a)(5).
    (d) Qualified release order. In the case of merchandise which is 
entered for warehousing, for transportation in bond, for exportation, or 
is to be admitted to a foreign trade zone, the release order may be 
qualified as follows:
    (1) ``For transfer to the bonded warehouse designated in the 
warehouse entry,'' if the merchandise is entered for warehousing;
    (2) ``For transfer to the bonded carrier designated in the 
transportation entry,'' if the merchandise is entered for transportation 
in bond;
    (3) ``For transfer to the carrier designated in the export entry,'' 
if the merchandise is entered for exportation; or
    (4) ``For transfer to the foreign trade zone designated in Customs 
Form 214,'' if the merchandise is to be admitted to a foreign trade 
zone.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49788, Oct. 25, 1978; T.D. 86-16, 51 FR 5063, Feb. 11, 1986; T.D. 87-
75, 52 FR 20068, May 29, 1987; T.D. 90-87, 55 FR 47052, Nov. 9, 1990]



Sec. 141.112  Liens for freight, charges, or contribution in general 
average.

    (a) Definitions. The following are general definitions for the 
purposes of this section:
    (1) Freight. ``Freight'' means the charges for the transportation of 
the goods from the place of shipment in the foreign country to the final 
destination in the United States.
    (2) Charges. ``Charges'' means the charges due to or assumed by the 
claimant of the lien which are incident to the shipment and forwarding 
of the goods to the destination in the United States, but does not 
include the purchase price, whether advanced or to be collected, nor 
other claims not connected with the transportation of the goods.
    (3) General average. ``General average'' means the liability to 
contribution of the owners of a cargo which arises when a sacrifice of a 
part of such cargo has been made for the preservation of the residue or 
when money is expended to preserve the whole. It only arises from 
actions impelled by necessity.
    (4) Claimant. ``Claimant'' means a carrier, customs broker or the 
successors or assigns of either.
    (b) Notice of lien. A notice of lien for freight, charges, or 
contribution in general average pursuant to section 564, Tariff Act of 
1930, as amended (19 U.S.C. 1564), shall be filed with the port director 
on Customs Form 3485, signed by the authorized agent of the claimant and 
certified by him.
    (c) Preliminary notice of lien for contribution in general average. 
When the cargo of a vessel is subject to contribution in general 
average, a preliminary notice thereof may be filed with the port 
director and individual notices of lien filed thereafter. Upon receipt 
of a preliminary notice, the port director shall withhold release of any 
merchandise imported in the vessel for 2 days (exclusive of Sunday and 
holidays) after such merchandise is taken into Customs custody, unless 
proof is submitted that the claim for contribution in general average 
has been paid or secured.
    (d) Merchandise entered for immediate transportation. A notice of 
lien upon merchandise entered for immediate transportation shall be 
filed by the claimant with the port director at the destination.
    (e) Limitations on acceptance of notice of lien. A notice of lien 
shall be rejected and returned with the reason for rejection noted 
thereon if it is filed after any of the following actions have been 
taken concerning the merchandise:
    (1) Release from Customs custody;
    (2) Forfeiture under any provision of law;
    (3) Sale as unclaimed or abandoned merchandise under section 491 or 
559, Tariff Act of 1930, as amended (19 U.S.C. 1491 or 1559); or
    (4) Receipt and acceptance of a notice of abandonment to the 
Government under section 506(1) or 563(b), Tariff Act of 1930, as 
amended (19 U.S.C. 1506(1) or 1563(b)).

[[Page 42]]

    (f) Forfeited or abandoned merchandise. The acceptance of a notice 
of lien shall not in any manner affect the order of disposition and 
accounting for the proceeds of sales of forfeited and abandoned property 
provided for in Subpart D of part 127 and Sec. Sec. 158.44 and 162.51 
of this chapter.
    (g) Bond may be required. When any doubt exists as to the validity 
of a lien filed with the port director, he may require a bond on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter, to hold him harmless from any liability which may result 
from withholding the release of the merchandise.
    (h) Satisfaction of lien. The port director shall not adjudicate any 
dispute respecting the validity of any lien, but when the amount of such 
lien depends upon the quantity or weight of merchandise actually landed, 
the port director shall hold the lien satisfied upon the payment of an 
amount computed upon the basis of the official Customs report of 
quantity and weight. In all other cases, proof that the lien has been 
satisfied or discharged shall consist of a written release or receipt 
signed by the claimant and filed with the port director, showing payment 
of the claim in full.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 74-114, 39 
FR 32023, Apr. 3, 1974; T.D. 84-213, 49 FR 41184, Oct. 19, 1984; T.D. 
88-7, 53 FR 4962, Feb. 19, 1988; T.D. 97-82, 62 FR 51771, Oct. 3, 1997]



Sec. 141.113  Recall of merchandise released from Customs custody.

    (a) Merchandise not legally marked. Certain merchandise is required 
to be marked or labeled pursuant to the following provisions:
    (1) Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), 
pertaining to marking with country of origin;
    (2) Textile Fiber Products Identification Act (15 U.S.C. 70);
    (3) Wool Products Labeling Act (15 U.S.C. 68);
    (4) Fur Products Labeling Act (15 U.S.C. 69); and
    (5) Chapter 91, Additional U.S. Note 4, Harmonized Tariff Schedule 
of the United States (HTSUS), pertaining to special marking for watch 
and clock movements, cases, and dials.

If such merchandise is found after release to be not legally marked, the 
port director may demand its return to Customs custody for the purpose 
of requiring it to be properly marked or labeled. The demand for marking 
or labeling shall be made not later than 30 days after the date of entry 
in the case of merchandise examined in public stores, and places of 
arrival, such as docks, wharfs, or piers. Demand may be made no later 
than 30 days after the date of examination in the case of merchandise 
examined at the importer's premises or such other appropriate places as 
determined by the port director.
    (b) Textiles and textile products. For purposes of determining 
whether the country of origin of textiles and textile products subject 
to the provisions of Sec. 12.130 of this chapter has been accurately 
represented to Customs, the release from Customs custody of any such 
textile or textile product shall be deemed conditional during the 180-
day period following the date of release. If the port director finds 
during the conditional release period that a textile or textile product 
is not entitled to admission into the commerce of the United States 
because the country of origin of the textile or textile product was not 
accurately represented to Customs, he shall promptly demand its return 
to Customs custody. Notwithstanding the provisions of paragraph (h) of 
this section and Sec. 113.62(l)(1) of this chapter, a failure to comply 
with a demand for return to Customs custody made under this paragraph 
shall result in the assessment of liquidated damages equal to the value 
of the merchandise involved.
    (c) Other merchandise not entitled to admission. If at any time 
after entry the port director finds that any merchandise contained in an 
importation is not entitled to admission into the commerce of the United 
States for any reason not enumerated in paragraph (a) or (b) of this 
section, he shall promptly demand the return to Customs custody of any 
such merchandise which has been released.
    (d) Request for samples or additional examination packages not 
complied with by importer. If the importer has not promptly complied 
with a request for samples or additional examination

[[Page 43]]

packages made by the port director pursuant to Sec. 151.11 of this 
chapter, the port director may demand the return of the necessary 
merchandise to Customs custody.
    (e) Demand to importer of record or actual owner. A demand for the 
return of merchandise to Customs custody shall be made on the importer 
of record, except that it shall be made on the actual owner if an actual 
owner's declaration and superseding bond have been filed in accordance 
with Sec. 141.20 before the date of the demand.
    (f) Form of demand. A demand for the return of merchandise to 
Customs custody shall be made on Customs Form 4647 or other appropriate 
form, or by letter. One copy, with the date of mailing or delivery noted 
thereon, shall be retained by the port director and made part of the 
entry record.
    (g) Time limitation. A demand for the return of merchandise to 
Customs custody shall not be made after the liquidation of the entry 
covering such merchandise has become final.
    (h) Demand not complied with. When the demand of the port director 
for return of merchandise to Customs custody is not complied with, 
liquidated damages shall be assessed, except in the case of merchandise 
entered under chapter 98, subchapter XIII, HTSUS (19 U.S.C. 1202), in an 
amount equal to the value of the merchandise not returned or three times 
the value of the merchandise not returned if the merchandise is 
restricted or prohibited merchandise or alcoholic beverages, as 
determined at the time of entry. The amount of liquidated damages to be 
assessed on merchandise entered under chapter 98, subchapter XIII, HTSUS 
is set forth in Sec. 10.39(d)(3) of this chapter.

[T.D. 73-175, 38 FR 17447, July 2, 1973, as amended by T.D. 74-227, 39 
FR 32023, Sept. 4, 1974; T.D. 89-1, 53 FR 51262, Dec. 21, 1988; T.D. 92-
84, 57 FR 40607, Sept. 4, 1992; T.D. 93-66, 58 FR 44130, Aug. 19, 1993; 
T.D. 94-95, 59 FR 61800, Dec. 2, 1994; T.D. 99-64, 64 FR 43266, Aug. 10, 
1999; T.D. 01-26, 66 FR 16854, Mar. 28, 2001]



PART 142_ENTRY PROCESS--Table of Contents




Sec.
142.0 Scope.

                      Subpart A_Entry Documentation

142.1 Definitions.
142.2 Time for filing entry.
142.3 Entry documentation required.
142.3a Entry numbers.
142.4 Bond requirements.
142.5 [Reserved]
142.6 Invoice requirements.
142.7 Examination of merchandise.
142.8 Failure to file entry timely.

                  Subpart B_Entry Summary Documentation

142.11 Entry summary form.
142.12 Time for filing or submission for preliminary review.
142.13 When entry summary must be filed at time of entry.
142.14 Delinquent payment of Customs bills.
142.15 Failure to file entry summary timely.
142.16 Entry summary documentation.
142.17 One entry summary for multiple entries.
142.17a One consolidated entry summary for multiple ultimate consignees.
142.18 Entry summary not required for prohibited merchandise.
142.19 Release of merchandise under the entry summary.

             Subpart C_Special Permit for Immediate Delivery

142.21 Merchandise eligible for special permit for immediate delivery.
142.22 Application for special permit for immediate delivery.
142.23 Time limit for filing documentation after release.
142.24 Special permit.
142.25 Discontinuance of immediate delivery privileges.
142.26 Delinquent payment of Customs bills.
142.27 Failure to file documentation timely.
142.28 Withdrawal or entry summary not required for prohibited 
          merchandise.
142.29 Other procedures applicable.

                         Subpart D_Line Release

142.41 Line Release.
142.42 Application for Line Release processing.
142.43 Line Release application approval process.
142.44 Entry number range.
142.45 Use of bar code by entry filer.
142.46 Presentation of invoice and assignment of entry number.
142.47 Examinations of Line Release transactions.
142.48 Release procedure.
142.49 Deletion of C-4 Code.
142.50 Line Release data base corrections or changes.
142.51 Changing election of entry or immediate delivery.

[[Page 44]]

142.52 Port-wide and multiple port acceptance of Line Release.

    Authority: 19 U.S.C. 66, 1448, 1484, 1624.

    Source: T.D. 79-221, 44 FR 46821, Aug. 9, 1979, unless otherwise 
noted.



Sec. 142.0  Scope.

    This part sets forth requirements and procedures relating to (a) the 
entry of merchandise, as authorized by section 484, Tariff Act of 1930, 
as amended (19 U.S.C. 1484), and (b) special permits for immediate 
delivery of merchandise, as authorized by section 448(b), Tariff Act of 
1930, as amended (19 U.S.C. 1448(b)).



                      Subpart A_Entry Documentation



Sec. 142.1  Definitions.

    For definitions of ``entry'', ``entry summary'', ``submission'', 
``filing'', ``presentation'', ``entered for consumption'', ``entered for 
warehouse'', and ``entered temporarily under bond'', as these terms 
relate to the entry of merchandise, see Sec. 141.0a of this chapter.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984]



Sec. 142.2  Time for filing entry.

    (a) General rule: After arrival of merchandise. Merchandise for 
which entry is required will be entered within 15 calendar days after 
landing from a vessel, aircraft or vehicle, or after arrival at the port 
of destination in the case of merchandise transported in bond.
    (b) Before arrival of merchandise--(1) Entry. The entry 
documentation required by Sec. 142.3(a) may be submitted before the 
merchandise arrives within the limits of the port where entry is to be 
made, in which case the time of entry shall be the time specified in 
Sec. 141.68(a).
    (2) When entry summary serves as entry. The entry summary when it 
will be filed at time of entry to serve as both the entry and the entry 
summary, as provided in Sec. 142.3(b), may be submitted for preliminary 
review in accordance with Sec. Sec. 141.63(a) and 142.12(a)(2).

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 02-65, 67 FR 
68035, Nov. 8, 2002]



Sec. 142.3  Entry documentation required.

    (a) Contents. Except as provided in paragraph (b) of this section, 
the entry documentation required to secure the release of merchandise 
shall consist of the following:
    (1) Entry. Customs Form 3461 (appropriately modified), except that 
Customs Form 7533 (appropriately modified), in duplicate, may be used in 
place of Customs Form 3461 for merchandise imported from a contiguous 
country. The form used shall be prepared in accordance with Sec. 
141.61(a)(1) of this chapter.
    (2) Evidence of the right to make entry. Evidence of the right to 
make entry, as set forth in Sec. 141.11 of this chapter.
    (3) Commercial invoice. A commercial invoice, except that in those 
instances listed in Sec. 141.83(d) of this chapter where a commercial 
invoice is not required, a pro forma invoice or other acceptable 
documentation listed in that section may be submitted in place of a 
commercial invoice.
    (4) Packing list. A packing list, where appropriate.
    (5) Other documentation. Other documents which may be required by 
Customs or other Federal, State, or local agencies for a particular 
shipment.
    (6) Identification. When merchandise is imported having been sold, 
or consigned, to a person in the United States, the name, street 
address, and appropriate identification number of that person, as 
provided in Sec. 24.5 of this chapter, shall be shown on the entry 
documents (CF 3461, 3461 ALT, 7501). When, at the time of immediate 
delivery, entry or release, there is no known buyer, the name, street 
address, and appropriate identification number (as above) of the 
premises in the United States to which the merchandise is to be 
delivered must be shown on the entry or release documents.
    (b) Entry summary filed at time of entry. When the entry summary is 
filed at time of entry, in accordance with Sec. 142.12(a)(1) or Sec. 
142.13.

[[Page 45]]

    (1) Customs Form 3461 or 7533 shall not be required, and
    (2) Customs Form 7501, or 3311, as appropriate (see Sec. 142.11), 
shall serve as both the entry and the entry summary documentation if the 
additional documentation set out in paragraphs (a)(2), (3), (4), and (5) 
of this section and Sec. 142.16(b) is filed.
    (c) Extra copies. The port director may require additional copies of 
the documentation.

(R.S. 251, as amended (19 U.S.C. 66), secs. 484, 624, 46 Stat. 722, as 
amended, 759 (19 U.S.C. 1484, 1624); sec. 301, 80 Stat. 379 (5 U.S.C. 
301), Pub. L. 95-410 (Oct. 3, 1978); Pub. L. 96-511 (Dec. 11, 1980))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23167, June 5, 1984; T.D. 90-92, 55 FR 49884, Dec. 3, 1990]



Sec. 142.3a  Entry numbers.

    (a) Placement on Customs Forms. The importer or broker shall place 
an 11 character entry number on the entry and corresponding entry 
summary documentation. For documentation prepared on data processing 
equipment, the number shall be printed directly on the form. For 
manually prepared documentation, the number shall be pre-printed in a 
machine readable format specified by Customs. The same number shall not 
be used for more than one entry transaction.
    (b) Format. The following format, including hyphens, must be used 
when showing the entry number:

                              XXX-NNNNNNN-N

XXX represents an entry filer code assigned by Customs, NNNNNNN is a 
unique number which is assigned by the broker or importer, and N is a 
check digit computed from the first 10 characters based on a formula 
provided by Customs.

    (1) Assignment of Entry Filer Code. Customs will assign a unique 3 
character (alphabetic, numeric, or alpha numeric) entry filer code to 
all licensed brokers filing Customs entries. Customs will assign an 
entry filer code to certain importers filing Customs entries based on 
importer entry volume, frequency of entry filing, and other 
considerations. The broker or importer shall use this assigned code as 
the beginning three characters of the number for all Customs entries, 
regardless of where the entries are filed.
    (2) Entry Filer Assigned Number. For each entry, the broker or 
importer shall assign a unique 7 digit number. This number shall not be 
assigned to more than one transaction.
    (3) Check Digit. The broker or importer is responsible for ensuring 
that the check digit is computed by data processing equipment.
    (c) Pulication of Entry Filer Codes. Customs shall make available 
electronically a listing of filer codes and the importers, consignees, 
and customs brokers assigned those filer codes. The listing will be 
updated periodically.
    (d) Misuse of the Entry Filer Code. The port director may refuse to 
allow use of an assigned entry filer code if it is misused by the 
importer or broker.
    (e) Alternative Procedure. If an importer does not have an assigned 
entry filer code, or if the port director, in accordance with paragraph 
(d) of this section refuses to allow use of an assigned entry filer 
code, the importer or broker shall obtain forms with a Customs assigned 
pre-printed machine readable entry number with a computed check digit. 
These forms will be available for sale by Customs and must be obtained 
and used before the merchandise may be released from Customs custody.

[T.D. 86-106, 51 FR 19167, May 28, 1986, as amended by T.D. 98-25, 63 FR 
12996, Mar. 17, 1998]



Sec. 142.4  Bond requirements.

    (a) At the time of entry. Except as provided in Sec. 10.101(d) of 
this chapter, or paragraph (c) of this section, merchandise shall not be 
released from Customs custody at the time Customs receives the entry 
documentation or the entry summary documentation which serves as both 
the entry and the entry summary, as required by Sec. 142.3 unless a 
single entry or continuous bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter, executed by an 
approved corporate surety, or secured by cash deposits or obligations of 
the United States, as provided for in Sec. 113.40 of this chapter, has 
been filed. When any of the imported merchandise is subject to a tariff-
rate quota and is to be released at a time when the applicable quota is

[[Page 46]]

filled, the full rates shall be used in computing the estimated duties 
to determine the amount of the bond.
    (b) If entry summary is filed after entry. (1) Except as provided in 
Sec. 141.102(d) of this chapter, if the entry summary is filed after 
the entry, the bond filed at the time of entry, as required by paragraph 
(a) of this section or by Sec. 142.19, shall continue to be obligated 
unless a superseding bond is filed, as provided in Sec. 141.20 of this 
chapter, or unless a bond of the type described in paragraph (a) of this 
section is filed under the circumstances described in paragraph (b)(2) 
of this section. If a superseding bond is filed, or if a bond is filed 
under the circumstances described in paragraph (b)(2) of this section, 
the obligations of the initial bond shall be terminated as to any 
liability which may accrue after the superseding or other bond becomes 
effective.
    (2) If entry is made in the name of an agent, supported by the 
agent's bond, or in the name of a principal, supported by the 
principal's bond, and the entry summary thereafter is filed in the name 
of the other party, the party named in the entry summary shall file a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter. In this circumstance, the bond obligation 
of the party in whose name entry was made shall be terminated, as to 
liability which may accrue after the bond filed by the party named in 
the entry summary becomes effective, and the party filing the entry 
summary need not file the separate declaration of the actual owner and 
the superseding bond otherwise required under Sec. 141.20 of this 
chapter.
    (c) Waiver of surety or cash deposit. (1) The port director may 
waive the requirement for surety or cash deposit on the bond required by 
this section when (i) the value of the merchandise which the bond 
secures does not exceed $2,500, (ii) the entry summary documentation is 
filed and estimated duties, if any, are deposited prior to release of 
the merchandise and (iii) the importer has not been delinquent or 
otherwise remiss in any transaction with Customs.
    (2) This authority to waive surety or cash deposit does not apply to 
(i) quota merchandise, (ii) any type of merchandise which, in the 
opinion of the port director, cannot be easily appraised or classified, 
or (iii) any type of merchandise where there may be, in the opinion of 
the port director based on past experience, a question of redelivery.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41184, Oct. 19, 1984; T.D. 85-161, 50 FR 38981, Sept. 26, 1985]



Sec. 142.5  [Reserved]



Sec. 142.6  Invoice requirements.

    (a) Contents. The commercial invoice, or the documentation 
acceptable in place of a commercial invoice in those instances listed in 
Sec. 141.83(d) of this chapter, shall be furnished with the entry and 
before release of the merchandise is authorized. The commercial invoice 
or other acceptable documentation shall contain:
    (1) An adequate description of the merchandise.
    (2) The quantities of the merchandise.
    (3) The values or approximate values of the merchandise.
    (4) The appropriate eight-digit subheading from the Harmonized 
Tariff Schedule of the United States. If the importer is uncertain of 
the appropriate subheading number, Customs shall assist him at his 
request. The port director may waive this requirement if he is satisfied 
that the information is not available at the time release of the 
merchandise is authorized.
    (5) The name and complete address of the foreign individual or firm 
who is responsible for invoicing the merchandise, ordinarily the 
manufacturer/seller, but where the manufacturer is not the seller, the 
party who sold the merchandise for export to the U.S., or made the 
merchandise available for sale.
    (b) Information not required when filing entry. In addition to the 
information specified in paragraph (a) of this section, the commercial 
invoice or substitute document filed with the entry documentation also 
may include any other invoice information required by Sec. Sec. 141.86 
through 141.89 of this chapter. However, if this information does not

[[Page 47]]

appear on the invoice or substitute document filed with the entry 
documentation, it shall be included in the invoice or substitute 
document delivered at the time the entry summary documentation is filed.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979; T.D. 80-26, 45 FR 3901, Jan. 
21, 1980, as amended by T.D. 90-25, 55 FR 12343, Apr. 3, 1990; T.D. 90-
78, 55 FR 40167, Oct. 2, 1990]



Sec. 142.7  Examination of merchandise.

    No merchandise for which the entry documentation required by Sec. 
142.3 has been filed shall be released until it has been examined, or 
until adequate samples have been taken in the case of merchandise which 
is to be classified and appraised by means of samples, unless this 
requirement is waived by the port director in accordance with section 
499, Tariff Act of 1930, as amended (19 U.S.C. 1499).



Sec. 142.8  Failure to file entry timely.

    Merchandise for which timely entry is not filed as required by Sec. 
142.2 shall be treated in accordance with Sec. 4.37 and part 127 of 
this chapter.



                  Subpart B_Entry Summary Documentation



Sec. 142.11  Entry summary form.

    (a) Customs Form 7501. The entry summary shall be on Customs Form 
7501 unless a different form is prescribed elsewhere in this chapter. 
Customs Form 7501 shall be used for merchandise formally entered for 
consumption, formally entered for warehouse, or rewarehouse in 
accordance with Sec. 144.11 of this chapter, and formally entered 
temporarily under bond under Sec. 10.31 of this chapter. The entry 
summary for merchandise which may be entered free of duty in accordance 
with Sec. 10.1 (g) or (h) of this chapter may be on Customs Form 3311 
instead of on Customs Form 7501. For merchandise entitled to be entered 
under an informal entry, see Sec. 143.23 of this chapter.
    (b) Extra copies. The port director may require additional copies of 
the entry summary.

(R.S. 251, as amended (19 U.S.C. 66), secs. 484, 624, 46 Stat. 722, as 
amended, 759 (19 U.S.C. 1484, 1624); sec. 301, 80 Stat. 379 (5 U.S.C. 
301), Pub. L. 95-410 (Oct. 3, 1978); Pub. L. 96-511 (Dec. 11, 1980))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23167, June 5, 1984; T.D. 84-213, 49 FR 41185, Oct. 19, 1984]



Sec. 142.12  Time for filing or submission for preliminary review.

    (a) At option of importer--(1) Filing. Except as provided in Sec. 
142.13, the importer may file the entry summary documentation at the 
time of entry in which case the entry summary, with estimated duties 
attached, shall serve as both the entry and the entry summary.
    (2) Submission for preliminary review. If the importer intends to 
file the entry summary documentation at the time of entry, he may submit 
the entry summary documentation for preliminary review before arrival of 
the merchandise, in accordance with Sec. 141.63(a) of this chapter. 
After preliminary review is completed, the entry summary shall be 
returned to the importer for filing in accordance with paragraph (a)(1) 
of this section.
    (b) When required. If the importer is not required to file the entry 
summary documentation at the time of entry under the provisions of Sec. 
142.13, or if he does not elect to do so, the entry summary 
documentation shall be filed, with estimated duties attached, within 10 
working days after the time of entry.
    (c) Estimated duties. Estimated duties, if any, shall be deposited 
in accordance with the provisions of subpart G of part 141 of this 
chapter.



Sec. 142.13  When entry summary must be filed at time of entry.

    (a) Authority of port director. The port director may require that 
the entry summary documentation be filed and that estimated duties, if 
any, be deposited at the time of entry before the merchandise is 
released if the importer:

[[Page 48]]

    (1) Has failed repeatedly to file timely entry summary documentation 
without justification,
    (2) Has not taken prompt action to settle a claim for liquidated 
damages issued under Sec. 142.15 for failure to file entry summary 
documentation timely, or a claim for liquidated damages issued under the 
basic importation and entry bond for failure to deposit estimated 
duties, taxes and charges timely, as provided in such bond. ``Prompt 
action'' means that the importer, within the time specified in a claim 
for liquidated damages, shall petition for relief or pay the amount 
claimed and, in appropriate cases, file the entry summary documentation 
and deposit estimated duties, if any, or
    (3) Has repeatedly delivered entry summary documentation, which is 
incomplete or which contains erroneous information.
    (4) Is substantially or habitually delinquent in the payment of 
Customs bills. See Sec. 142.14.
    (b) Special classes of merchandise--(1) Quota-class merchandise. 
Quota-class merchandise shall not be released upon delivery of entry 
documentation before presentation of:
    (i) An entry summary for consumption with estimated duties attached; 
or
    (ii) A withdrawal for consumption with estimated duties attached; or
    (iii) An entry summary for consumption, without the estimated duties 
attached, if the entry/entry summary information and a valid scheduled 
statement date have been successfully received by Customs via the 
Automated Broker Interface. (See part 132 and Sec. 24.25 of this 
chapter.)
    (2) Other classes of merchandise. Entry summary documentation, with 
estimated duties attached, or a withdrawal for consumption with 
estimated duties attached, or an entry summary for consumption, without 
the estimated duties attached if the entry/entry summary information and 
a valid scheduled statement date have previously been transmitted to 
Customs via the Automated Broker Interface (see Sec. 24.25 of this 
chapter) shall be filed at the time of entry before release of any other 
merchandise of a class designated by Customs Headquarters.
    (c) [Reserved]
    (d) Brokers; restriction. A broker shall not circumvent an action 
taken under this section by applying for release of the importer's 
merchandise in the broker's name and under the broker's bond.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 89-104, 54 
FR 50498, Dec. 7, 1989; T.D. 93-37, 58 FR 30984, May 28, 1993; T.D. 95-
77, 60 FR 50020, Sept. 27, 1995]



Sec. 142.14  Delinquent payment of Customs bills.

    The following procedure shall be followed if an importer is 
substantially or habitually delinquent in the payment of Customs bills:
    (a) Notice. The importer shall be advised in writing by the port 
director in which he is substantially or habitually delinquent that he 
shall file the entry summary documentation with estimated duties 
attached, before his merchandise may be released from Customs custody at 
that port. The notice shall state the reason for the action and advise 
the importer that if payment of all his delinquent Customs bills is not 
made within 10 working days from the date of the notice, he shall be 
required to file the entry summary document with estimated duties 
attached, before his merchandise may be released. In either case, the 
entry summary shall serve as both the entry and the entry summary.
    (b) Removal of requirement by port. If the importer pays all his 
delinquent Customs bills within 10 working days after the date of the 
notice, the requirement shall be removed, and the importer need file 
only the entry documentation specified in Sec. 142.3 to secure release 
of his merchandise.
    (c) Removal of requirement by Headquarters. If the importer has not 
paid all his delinquent Customs bills within 10 working days after the 
date of the notice, he also shall be required to file the entry summary 
documentation, with estimated duties attached, at each Customs port. In 
this case, the entry summary shall serve as both the entry and the entry 
summary. This requirement shall remain in effect in each port of entry 
until notification is received from Headquarters that the requirement is 
removed and that the importer need submit only the entry

[[Page 49]]

documentation listed in Sec. 142.3 to secure release of his 
merchandise.



Sec. 142.15  Failure to file entry summary timely.

    If the entry summary documentation is not filed timely, the port 
director shall make an immediate demand for liquidated damages in the 
entire amount of the bond in the case of a single entry bond. When the 
transaction has been charged against a continuous bond, the demand shall 
be for the amount that would have been demanded if the merchandise had 
been released under a single entry bond. Any application to cancel 
liquidated damages incurred shall be made in accordance with part 172 of 
this chapter.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]



Sec. 142.16  Entry summary documentation.

    (a) Entry summary not filed at time of entry. When the entry 
documentation is filed before the entry summary documentation, one copy 
of the entry document and the commercial invoice, or the documentation 
filed in place of a commercial invoice in the instances listed in Sec. 
141.83(d) of this chapter, shall be returned to the importer after 
Customs authorizes release of the Merchandise. The importer may use 
these documents in preparing the entry summary, Customs Form 7501, and 
shall file them with the entry summary documentation within the time 
period stated in Sec. 142.12(b). The entry summary documentation also 
shall include any other documents required for a particular shipment 
unless a bond for missing documents is on file, as provided in Sec. 
141.66 of this chapter.
    (b) Entry summary filed at time of entry. When the entry summary 
documentation is filed at time of entry, the documentation listed in 
Sec. 142.3 shall be filed at the same time, except that Customs Form 
3461 or 7533 shall not be required. The importer also shall file any 
additional invoice required for a particular shipment.

(R.S. 251, as amended (19 U.S.C. 66), secs. 484, 624, 46 Stat. 722, as 
amended, 759 (19 U.S.C. 1484, 1624); sec. 301, 80 Stat. 379 (5 U.S.C. 
301), Pub. L. 95-410 (Oct. 3, 1978); Pub. L. 96-511 (Dec. 11, 1980))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979; T.D. 80-26, 45 FR 3901, Jan. 
21, 1980, as amended by T.D. 84-129, 49 FR 23168, June 5, 1984]



Sec. 142.17  One entry summary for multiple entries.

    (a) Requirements. Except as provided in paragraph (b) of this 
section, the port director may permit the filing of one entry summary 
for merchandise the subject of separate entries if:
    (1) The merchandise has the same country of exportation, and the 
same country of origin,
    (2) The merchandise arrives by land, by the same vessel or by the 
same air carrier,
    (3) The merchandise is consigned to the same consignee,
    (4) The time between the date of the first entry and the date of the 
last entry does not exceed 1 week,
    (5) The entry summary document is filed within 10 working days from 
the date of the first entry, and
    (6) Each entry is identified separately by entry number on the entry 
summary.
    (b) Merchandise not eligible. One entry summary shall not be used 
for multiple entries of the following:
    (1) Quota-class merchandise,
    (2) Prohibited merchandise,
    (3) Merchandise subject to restrictions which require processing and 
documentation more frequently than on a weekly basis,
    (4) Merchandise for which liquidation has been withheld, and
    (5) Merchandise classifiable under the same Harmonized Tariff 
Schedule of the United States subheading number, to the eight-digit 
level having different rates of duty for which entries or immediate 
transportation entries have been filed. However, this provision is not 
applicable in the following circumstances:
    (i) Entries. Entries may be consolidated if the time of entry is:
    (A) Before the date of change in rate of duty, or

[[Page 50]]

    (B) On or after the date of change in rate of duty.
    (ii) Immediate transportation entries. Immediate transportation 
entries may be consolidated if the date of acceptance is:
    (A) Before the date of change in the rate of duty, or
    (B) On or after the date of change in rate of duty.
    (c) Entry documentation not in proper form. If an entry summary 
covering multiple entries refers to entry documentation which is not in 
proper form, the entry summary and the entry documentation shall be 
returned for correction.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 89-1, 53 FR 
51262, Dec. 21, 1988]



Sec. 142.17a  One consolidated entry summary for multiple ultimate 
consignees.

    (a) Applicability. The port director may permit a broker as nominal 
consignee to file a consolidated entry summary in his own name under his 
own bond covering shipments of like or similar merchandise consigned to 
various ultimate consignees provided that all the merchandise is:
    (1) Imported on the same day,
    (2) Itemized as to each category of merchandise by Harmonized Tariff 
Schedule of the United States Annotated subheading to the ten-digit 
level, and
    (3) Released on the same day, either under the entry documentation 
specified in Sec. 142.3, or under a special permit for immediate 
delivery. A consolidated entry summary may be filed for merchandise 
arriving by land, by the same vessel, or by the same air carrier.
    (b) Information required on the entry summary--(1) Separate listing 
according to ultimate consignee. The broker shall list separately on the 
face of the consolidated entry summary the merchandise for each ultimate 
consignee, together with the appropriate entry or special permit 
numbers.
    (2) If different land carriers are involved. If merchandise arriving 
by different land carriers is included on one entry summary, necessary 
information pertaining to each carrier shall be shown on the face of the 
entry summary, related to the applicable shipment.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 89-1, 53 FR 
51262, Dec. 21, 1988]



Sec. 142.18  Entry summary not required for prohibited merchandise.

    (a) Exportation or destruction of prohibited merchandise. If 
merchandise released at time of entry is later found to be prohibited, 
the port director shall demand its return to Customs custody in 
accordance with Sec. 141.113 of this chapter, and an entry summary and 
the deposit of estimated duties, if any, shall not be required provided:
    (1) An entry for exportation, Customs Form 7512, or an application 
to destroy the merchandise under Customs supervision is made within 10 
days after the time of entry, and the exportation or destruction is 
accomplished promptly, or
    (2) An entry for transportation and exportation, Customs Form 7512, 
is made within 10 days after the time of entry and domestic carriage of 
the merchandise does not conflict with the requirements of another 
Federal agency.
    (b) Procedures for exportation or destruction. The exportation or 
destruction of prohibited merchandise as required by paragraph (a) shall 
be in accordance with Sec. Sec. 158.41 and 158.45(c) of this chapter.



Sec. 142.19  Release of merchandise under the entry summary.

    Merchandise, for which an entry summary serves as both an entry and 
an entry summary, shall not be released from Customs custody until a 
bond has been filed, or the entry has been liquidated, as follows:
    (a) Bond. Merchandise not designated for examination may be released 
to, or upon the order of, the carrier if a bond is filed on Customs Form 
301, containing the bond conditions set forth in Sec. 113.62 of this 
chapter. Merchandise designated for examination may be released under 
the bond after examination has been completed if:
    (1) It has been found to be truly and correctly invoiced,
    (2) It is entitled to admission into the commerce of the United 
States, and

[[Page 51]]

    (3) Its release is not precluded by any law or regulation. If 
merchandise is entered by or on behalf of a United States Government 
department or agency, the stipulation prescribed in Sec. 141.102(d) of 
this chapter shall be accepted in place of a bond.
    (b) After liquidation. If a bond has not been filed in accordance 
with paragraph (a) of this section, the merchandise shall not be 
released before:
    (1) The entry has been liquidated and the full amount of all duties 
and taxes due, including dumping or other special duties and charges, 
has been paid, or the right to free entry established.
    (2) The port director determines that the merchandise may be 
admitted into the commerce of the United States, and
    (3) All documents relating to the merchandise which are required by 
law or regulation have been filed.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]



             Subpart C_Special Permit for Immediate Delivery



Sec. 142.21  Merchandise eligible for special permit for immediate 
delivery.

    Merchandise may be released under a special permit for immediate 
delivery, in accordance with section 448(b), Tariff Act of 1930, as 
amended (19 U.S.C. 1448(b)), in the following circumstances:
    (a) Contiguous countries. At the discretion of the port director, 
merchandise arriving by land from Canada or Mexico may be released under 
a special permit for immediate delivery provided the importer has on 
file a bond on Customs Form 301, containing the bond conditions set 
forth in Sec. 113.62 of this chapter. An entry summary shall be filed 
in accordance with Sec. 142.22(b)(1), and estimated duties, if any, 
shall be deposited, within the time period specified in Sec. 142.23 for 
all merchandise from contiguous countries released under a special 
permit except for fresh fruits and vegetables for human consumption 
released under the provisions of paragraph (b) of this section.
    (b) Fresh fruits and vegetables. (1) An application for a special 
permit for immediate delivery may be made for the transportation of 
fresh fruits and vegetables for human consumption arriving from Canada 
or Mexico to the importer's premises within the port of importation, but 
removed from the area immediately contiguous to the border.
    (2) The application shall be accompanied by a continuous bond on 
Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter.
    (3) The fresh fruits and vegetables shall be transported to the 
importer's premises in the vehicles in which they crossed the border or, 
if transshipment is necessary in vehicles provided by the importer. The 
fresh fruits and vegetables may be examined at the importer's premises. 
Those portions without commercial value may be disposed of in accordance 
with the provisions of Sec. 158.11(b) of this chapter, and the balance 
shall be entered for consumption or transported in bond under an entry 
for immediate transportation without appraisement or under an entry for 
transportation and exportation.
    (c) Agency of U.S. Government. Merchandise may be released under the 
immediate delivery procedure if the shipment is consigned to or for the 
account of any agency or office of the United States Government, or to 
an officer or official of any such agency in his official capacity, as 
provided in Sec. 10.101 of this chapter.
    (d) Articles of a trade fair. Articles for a trade fair may be 
released under the immediate delivery procedure, as provided in Sec. 
147.13 of this chapter.
    (e) Quota-class merchandise--(1) Tariff rate. At the discretion of 
the port director, merchandise subject to a tariff-rate quota may be 
released under a special permit for immediate delivery provided the 
importer has on file a bond on Customs Form 301, containing the bond 
conditions set forth in Sec. 113.62 of this chapter. However, 
merchandise subject to a tariff-rate quota may not be incrementally 
released under a special permit for immediate delivery as provided in 
paragraph (g) of this section. Where a special permit is authorized, an 
entry summary will be properly presented pursuant to Sec. 132.1 of

[[Page 52]]

this chapter within the time specified in Sec. 142.23, or within the 
quota period, whichever expires first. If proper presentation is not 
made until after the tariff-rate quota is filled, the merchandise shall 
not be entitled to the quota rate of duty, and the importer shall pay 
duties at the over-quota rate.
    (2) Absolute. At the discretion of the port director, perishable 
merchandise of a class approved by Customs Headquarters which is subject 
to an absolute quota may be released under a special permit for 
immediate delivery for removal to the importer's premises, or to any 
other location approved by the port director, until an entry summary is 
properly presented pursuant to Sec. 132.1 of this chapter. However, 
merchandise subject to an absolute quota under this paragraph may not be 
incrementally released under a special permit for immediate delivery as 
provided in paragraph (g) of this section. Where a special permit is 
authorized, a proper entry summary must be presented for merchandise so 
released within the time specified in Sec. 142.23, or within the quota 
period, whichever expires first. If the absolute quota is filled before 
the importer has properly presented an entry summary, he may either 
present an entry summary for warehouse or, under Customs supervision, 
export or destroy the merchandise.
    (f) Release from warehouse followed by warehouse withdrawal for 
consumption. Merchandise may be released from warehouse under a special 
permit:
    (1) At the discretion of the port director when:
    (i) The warehouse is located a considerable distance from the 
customhouse and actual release of the merchandise from the warehouse may 
not be effected within the next full business day after the day of the 
payment of duty, and
    (ii) The port has sufficient manpower to permit such practice;
    (2) The importer shall have on file a bond on Customs Form 301, 
containing the bond conditions set forth in Sec. 113.62 of this 
chapter; and
    (3) The immediate delivery permit shall be annotated to state that a 
warehouse withdrawal for consumption will be filed for this merchandise.
    (g) Incremental release of split shipments. Merchandise subject to 
Sec. 141.57(d)(2) of this chapter, which is purchased and delivered to 
the carrier as a single shipment, but which is shipped by the carrier in 
separate portions to the same port of entry as provided in Sec. 
141.57(b)(3), may be released incrementally under a special permit. 
Incremental release means releasing each portion of such shipments 
separately as they arrive.
    (h) When authorized by Headquarters. Headquarters may authorize the 
release of merchandise under the immediate delivery procedure in 
circumstances other than those described in paragraphs (a), (b), (c), 
(d), (e), (f) and (g) of this section provided a bond on Customs Form 
301 containing the bond conditions set forth in Sec. 113.62 of this 
chapter is on file.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 81-260, 46 
FR 49842, Oct. 8, 1981; T.D. 84-213, 49 FR 41185, Oct. 19, 1984; T.D. 
89-104, 54 FR 50499, Dec. 7, 1989; T.D. 03-09, 68 FR 8721, Feb. 25, 
2003]



Sec. 142.22  Application for special permit for immediate delivery.

    (a) Form. An application for a special permit for immediate delivery 
will be made on Customs Form 3461, Form 3461 ALT, or its electronic 
equivalent, supported by the documentation provided for in Sec. 142.3. 
A commercial invoice will not be required, except for merchandise 
released under the provisions of 19 U.S.C. 1484(j). Instead of a 
commercial invoice, the importer may deliver to Customs a pro forma 
invoice, waybill, or other document setting forth an adequate 
description of the merchandise and the quantities, together with the 
values or approximate values when values are needed for the purpose of 
examination. If the merchandise is to be released under a term special 
permit, the documentation also shall show the term special permit 
number, as provided for in Sec. 142.24.
    (b) Customs custody. Merchandise for which a special permit for 
immediate delivery has been issued under Sec. 142.21

[[Page 53]]

of this part shall be considered to remain in Customs custody until the 
filing of one of the following:
    (1) An entry summary for consumption, with estimated duties 
attached; an entry summary for consumption without estimated duties 
attached, if entry/entry summary information and a valid scheduled 
statement date (pursuant to Sec. 24.25 of this chapter) have 
successfully been received by Customs via the Automated Broker 
Interface; an entry summary for warehouse; or an entry summary for entry 
temporarily under bond, which may be filed in any of the circumstances 
under Sec. 142.21 of this part except for merchandise released from 
warehouse under Sec. 142.21(f) of this part;
    (2) A withdrawal for consumption, with estimated duties attached, 
which shall be filed only for merchandise released from warehouse under 
Sec. 142.21(f) of this part;
    (3) An entry for transportation and exportation, immediate 
transportation without appraisement, or direct exportation, which shall 
be filed in those circumstances under Sec. 142.21(b) and (e)(2) of this 
part; or entry for transportation and exportation, or direct 
exportation, which shall be filed in the circumstances under Sec. 
142.28 of this part or
    (4) An application to destroy, which shall be filed in those 
circumstances under Sec. Sec. 142.21(b) and (e)(2), and Sec. 142.28 of 
this part.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 81-260, 46 
FR 49842, Oct. 8, 1981; T.D. 89-104, 54 FR 50499, Dec. 7, 1989; T.D. 03-
09, 68 FR 8721, Feb. 25, 2003]



Sec. 142.23  Time limit for filing documentation after release.

    The applicable documentation described in Sec. 142.22(b) shall be 
filed, and estimated duties, if any, shall be deposited, within 10 
working days after the merchandise or any part of the merchandise is 
authorized for release under a special permit for immediate delivery or, 
for quota class merchandise within the quota period, whichever expires 
first.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979; T.D. 80-26, 45 FR 3901, Jan. 
21, 1980; T.D. 98-34, 63 FR 19399, Apr. 20, 1998]



Sec. 142.24  Special permit.

    (a) Conditions for issuance. At the discretion of the port director, 
a special permit for immediate delivery may be issued on Customs Form 
3461, appropriately modified, for a class or classes of merchandise 
particularly described in the application for the permit.
    (b) Notation of value for each shipment. When applying for the 
release of a shipment of merchandise under a special permit for 
immediate delivery, the importer shall note a value for the shipment on 
the documentation presented. The value so noted shall not be less than 
the invoice value.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]



Sec. 142.25  Discontinuance of immediate delivery privileges.

    (a) Authority of port director. The port director may discontinue 
immediate delivery privileges if the importer:
    (1) Has failed repeatedly to file the applicable Customs 
documentation set forth in Sec. 142.22(b) timely without justification, 
or
    (2) Has not taken prompt action to settle a claim for liquidated 
damages issued under Sec. 142.27 for failure to file the applicable 
Customs documentation set forth in Sec. 142.22(b) timely, or a claim 
for liquidated damages issued under the basic importation and entry bond 
for failure to deposit estimated duties, taxes and charges timely, as 
provided in such bond. ``Prompt action'' means that the importer, within 
the time specified in a claim for liquidated damages shall petition for 
relief or pay the amount claimed and, file the applicable documentation 
and deposit estimated duties, if any.
    (3) Has repeatedly delivered documentation required by Sec. 
142.22(b) which is incomplete or which contains erroneous information.

[[Page 54]]

    (4) Is substantially or habitually delinquent in the payment of 
Customs bills. See Sec. 142.26.
    (b) Brokers; restriction. A broker shall not circumvent an action 
taken under this section by applying for the immediate release of the 
importer's merchandise in the broker's name and under the broker's bond.

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 93-37, 58 FR 
30984, May 28, 1993; T.D. 95-77, 60 FR 50020, Sept. 27, 1995]



Sec. 142.26  Delinquent payment of Customs bills.

    The following procedures shall be followed if an importer is 
substantially or habitually delinquent in the payment of Customs bills:
    (a) Notice. The importer shall be advised in writing by the director 
of the port in which he is substantially or habitually delinquent that 
his immediate delivery privileges have been suspended. The notice shall 
state the reason for the action and advise the importer that if payment 
of all his delinquent Customs bills is not made within 10 working days 
from the date of the notice, the importer's immediate delivery 
privileges also shall be suspended at all Customs ports.
    (b) Reinstatement of privileges by port. If the importer pays all 
his delinquent Customs bills within 10 working days after the date of 
the notice, the suspension shall be removed, and the importer's 
immediate delivery privileges shall be reinstated.
    (c) Reinstatement of privileges by Headquarters. If the importer has 
not paid all his delinquent Customs bills within 10 working days after 
the date of the notice, his immediate delivery privileges shall be 
suspended at all Customs ports. This suspension shall remain in effect 
in each port of entry until notification is received from Headquarters 
that the suspension is removed and that the importer's immediate 
delivery privileges have been reinstated.



Sec. 142.27  Failure to file documentation timely.

    If the applicable Customs documentation set forth in Sec. 142.22(b) 
is not filed within the time provided in Sec. 142.23, the port director 
shall make an immediate demand for liquidated damages in the amount of 
the bond in the case of a single entry bond. When the transaction has 
been charged against a continuous bond, the demand shall be for the 
amount that would have been demanded if the merchandise had been 
released under a single entry bond. Any application for cancellation of 
liquidated damages incurred shall be made in accordance with part 172 of 
this chapter.

(R.S. 251, as amended, secs. 623, as amended, 624, 46 Stat. 759, as 
amended (19 U.S.C. 66, 1623, 1624))

[T.D. 79-221, 44 FR 46821, Aug. 9, 1979, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]



Sec. 142.28  Withdrawal or entry summary not required for prohibited 
merchandise.

    (a) Exportation or destruction of prohibited merchandise. If 
merchandise released under a special permit for immediate delivery later 
is found to be prohibited, the port director shall demand its recall in 
accordance with Sec. 141.113 of this chapter (applicable to the recall 
of merchandise released from Customs custody), and withdrawal or entry 
summary documentation and the deposit of estimated duties, if any, shall 
not be required provided:
    (1) The merchandise is exported or destroyed under Customs 
supervision within the time limit for entry specified in Sec. 142.23, 
or
    (2) An entry for exportation or for transportation and exportation 
on Customs form 7512, or an application to destroy the merchandise, is 
made within the specified time limit, and the exportation or destruction 
is accomplished promptly.
    (b) Procedures for exportation or destruction. The exportation or 
destruction of prohibited merchandise required by paragraph (a) of this 
section shall be under the same procedures as exportation or destruction 
of prohibited merchandise covered by a consumption entry with remission 
or refund of duties. See Sec. Sec. 158.41 and 158.45(c) of this 
chapter.
    (c) Notation on exportation entry. An entry for exportation or for 
transportation and exportation of prohibited merchandise for which no 
entry summary for consumption has been filed

[[Page 55]]

shall be stamped or imprinted conspicuously with the legend:

              Prohibited Merchandise, No Other Entry Filed



Sec. 142.29  Other procedures applicable.

    Merchandise released under a special permit for immediate delivery 
shall be subject to the same procedures applicable to all other imported 
merchandise, unless specific procedures are set forth in this subpart.



                         Subpart D_Line Release

    Source: T.D. 92-93, 57 FR 44093, Sept. 24, 1992, unless otherwise 
noted.



Sec. 142.41  Line Release.

    Line Release is an automated system designed to release and tract 
repetitive shipments. It is a method of entry or immediate delivery 
extended to importers of merchandise which Customs deems to be 
repetitive and high volume. Line Release may be used only at locations 
approved by Customs for handling Line Release. At certain high-risk 
locations along the land borders of the United States (the locations to 
be published in the Federal Register), which are approved by Customs for 
handling Line Release, the use of Line Release for particular shipments 
may be denied by Customs unless the imported merchandise is transported 
by carriers that participate in the Land Border Carrier Initiative 
Program (see, subpart H of part 123 of this chapter).

[T.D. 92-93, 57 FR 44093, as amended by T.D. 99-2, 64 FR 33, Jan. 4, 
1999]



Sec. 142.42  Application for Line Release processing.

    In order to obtain approval for processing import transactions 
through Line Release, a broker or importer filing its own entries (entry 
filer) must submit an application to the port director, signed by the 
entry filer, in a format described as a Line Release Data Loading Sheet. 
The application must be accompanied by a representative sample of an 
actual commercial invoice for the products sought to be processed under 
Line Release. The Line Release Data Loading Sheet must contain the 
following information with each information element appearing on a 
separate line.
    (a) Port where application is being made.
    (b) Initiating Company Information: name, address, city, state, 
contact person, phone number of contact person, and signature.
    (c) Listing of all ports in which the initiating company has filed a 
similar application for Line Release.
    (d) Country of origin codes (ISO codes from Annex B of HTSUS) for 
the merchandise.
    (e) Shipper or manufacturer information: Name, address, city, 
province/state, country, postal code, indication by noting ``M'' or 
``S'' whether this information relates to a manufacturer (M) or a 
shipper (S), and manufacturer identification number of the shipper or 
manufacturer.
    (f) Importer information (if importer is different than filer): 
Name, address, city, state and country, zip code, importer number, bond 
number, and surety code.
    (g) Entry filer information: Name, importer number, filer code, bond 
number, and surety code.
    (h) Product information: Product description, manifest unit of 
measure, HTSUS number described to sub-heading level for particular 
product or range of HTSUS numbers at sub-heading levels for multiple 
products for which Line Release is sought.
    (i) Election of whether the Line Release transaction is to be 
considered an entry or an immediate delivery.



Sec. 142.43  Line Release application approval process.

    (a) Port review. The port director shall review each Line Release 
application to determine whether the shipments qualify for Line Release 
processing. The port director may contact the applicant for further 
information, if necessary. An application that fails to elect whether 
the Line Release transaction is to be considered an entry or an 
immediate delivery will be returned to the applicant. If all required 
information is submitted, the application will be forwarded to 
Headquarters for final processing.

[[Page 56]]

    (b) Assignment of C-4 Codes. A C-4 Code (Common Commodity 
Classification Code), which is a unique code identifying the shipper or 
manufacturer, importer, entry filer, and the product for each Line 
Release shipment, shall be assigned by Headquarters to each application 
approved for Line Release. Headquarters shall annotate each approved 
application with a C-4 Code and return the application to the port 
director who shall return the approved application to the entry filer.
    (c) Denial of Line Release application. If the port director is 
considering the denial of a Line Release application, consideration 
shall be given to whether an application by the same filer for the same 
transaction has been approved at another port. If there is not an 
approved application at another port and the port director determines 
that the application shall be denied, the application shall be noted 
denied and returned to the entry filer without a C-4 Code annotation by 
the port director. If an application has been approved at another port, 
but the port director still questions whether the application should be 
approved at his port, the port director shall forward the application to 
the Assistant Commissioner, Office of Information Management. The Office 
of Information and Technology will review the application and will 
notify the port director of the final determination.



Sec. 142.44  Entry number range.

    After an application for Line Release has received final approval, 
filers must provide the port director, in writing, with a range of entry 
numbers for use in the system so that an entry number can be assigned 
automatically to each Line Release transaction. For the purposes of this 
subpart, ``entry number'', when the release is an immediate delivery, 
merely refers to the Line Release transaction number; this number does 
not become the actual entry number until an entry for the merchandise 
released under the immediate delivery procedure is filed. A separate 
range must be provided for each Line Release site at the port. These 
entry numbers shall be used for assignment within the Line Release 
system. Entry filers shall not assign these numbers to other entry 
transactions.



Sec. 142.45  Use of bar code by entry filer.

    (a) Printing of C-4 Code. Upon receipt of an approved Line Release 
application, the entry filer, in accordance with instructions from the 
port director, shall preprint invoices with the C-4 Code in bar code and 
alpha-numeric format or print labels with the necessary information. Bar 
codes shall be printed in accordance with the specifications stated in 
Customs Publication 561 (Line Release Overview). Labels or preprinted 
invoices also shall state the name of the shipper or manufacturer of the 
product and the name of the importer of record, if other than the entry 
filer, above the bar code and the name of the entry filer and a product 
description below the bar code.
    (b) Multiple commodity processing. Multiple commodity processing 
allows more than one product to be released under one entry number. The 
shipper/manufacturer, importer of record and the entry filer must be the 
same. The product description is the only variable allowed. The 
commodities should be listed on one invoice with C-4 Code labels for 
each commodity attached to the invoice.
    (c) Distribution of labels. If labels are used, the labels shall be 
affixed to the invoices in accordance with instructions from the port 
director. The entry filer may either affix the labels or distribute the 
labels to the shippers/manufacturers and instruct them in the use and 
placement of the labels.



Sec. 142.46  Presentation of invoice and assignment of entry number.

    (a) Presentation of invoice. When merchandise that has been approved 
for Line Release is imported at a Line Release site, the carrier, 
importer or filer shall present Customs with an invoice with the bar 
code or codes printed or affixed and, according to the method of 
transportation, the appropriate manifest document.
    (b) Verification of data. If after scanning the bar code at the Line 
Release site, the Customs officer verifies the data on the bar code with 
the information on the invoice, he will key the quantity on the invoice 
and an entry

[[Page 57]]

number will be automatically assigned to the transaction. If there are 
any differences between the system data and the invoice and bar code, 
including any differences in entry filer, the Customs officer shall 
order an examination.
    (c) Other agency documentation. If the Line Release shipment 
requires other agency documentation, the Customs officer at the Line 
Release site will be alerted to that requirement electronically when he 
verifies the data on the bar code with the information on the invoice. 
If the required form is presented to the officer with the documentation 
package, the shipment may be released.



Sec. 142.47  Examinations of Line Release transactions.

    (a) General. Merchandise imported under Line Release generally may 
be released without further Customs processing. Customs, however, may 
choose to inspect any Line Release shipment. Examinations may be either 
specifically ordered by the Customs officer or random.
    (b) Voiding of Line Release Transaction. Customs may void a Line 
Release transaction for the following reasons: Because of an 
examination, because a carrier transporting the Line Release merchandise 
is not a participant in the Land Border Carrier Initiative Program 
(LBCIP), or because a driver or conveyance is not authorized in 
accordance with the LBCIP. If this occurs, Customs will return the 
invoice to the carrier, and the entry filer, in order to enter 
merchandise, shall prepare and submit either a CF 3461 or 3461 
Alternate.

[T.D. 92-93, 57 FR 44093, Sept. 24, 1992, as amended by T.D. 99-2, 64 FR 
33, Jan. 4, 1999]



Sec. 142.48  Release procedure.

    (a) General. When the Customs officer at the Line Release site 
determines that a shipment is ready for release, release data, 
consisting of the entry number, the date and time of release, the 
inspector's badge number, the quantity and unit of measure, and the C-4 
Code will be printed on the invoice and the manifest document and, when 
other agency documentation is presented, may be printed on that 
documentation. The invoice shall be returned to the entry filer and the 
manifest document shall be retained by Customs.
    (b) Notification to non-ABI participants. The returned invoice with 
the release data shall be the release notification to non-ABI 
participants.
    (c) Notification to ABI participants. If the Line Release entry 
filer is an operational ABI participant, the filer shall receive an 
electronic notification of the release consisting of the importer of 
record number, the port of entry, the filer code, the entry number, the 
date and time of release, the manufacturer code, the quantity and unit 
of measure, the release site, the HTSUS number(s), the C-4 Code and the 
country or countries of origin.



Sec. 142.49  Deletion of C-4 Code.

    (a) By Customs. A port director may temporarily or permanently 
delete an entry filer's C-4 Code without providing the participant with 
any justification and without prior notification in cases of willfulness 
or when public health, interest, or safety so requires, thereby revoking 
the filer's use of Line Release.
    (b) By entry filer. Entry filers may delete C-4 Codes from Line 
Release by notifying the port director in writing on a Deletion Data 
Loading Sheet. Such notification shall state the C-4 Code which is to be 
deleted, the port where the C-4 Code is to be deleted and the reason for 
the requested deletion. A copy of the originally approved Data Loading 
Sheet must be submitted with the Deletion Data Loading Sheet. If only a 
temporary deletion is desired, the filer shall state the requested 
effective date for the deletion and the date the C-4 Code is requested 
to be returned to Line Release processing.



Sec. 142.50  Line Release data base corrections or changes.

    The applicant shall notify the port director of any changes in 
names, importer or filer numbers or bond information on a Line Release 
Data Loading Sheet as soon as possible. Notification shall be 
accomplished by the submission of a copy of the original loading sheet 
with a Correction Data Loading Sheet.

[[Page 58]]



Sec. 142.51  Changing election of entry or immediate delivery.

    An applicant who has already received a C-4 Code and wishes to 
change the election chosen on his Line Release application as to whether 
the release should be considered an entry or an immediate delivery must 
submit a letter requesting such change to the port director where the C-
4 Code is used. This letter must include the C-4 Code to be changed and 
the date the change is to be effective. If the requested change is for a 
temporary time period, the letter shall include the date the releases 
are to return to the release type originally requested. Applications 
that fail to state the effective dates of the changes requested will be 
returned to the applicant.



Sec. 142.52  Port-wide and multiple port acceptance of Line Release.

    (a) Port-wide processing. If a C-4 Code has been approved by the 
port director, the C-4 Code may be used at any Line Release site at the 
port.
    (b) Multiple port processing. In order for a C-4 Code approved at 
one port to be used at another port, the entry filer must submit an 
application to the port director of the other port. While uniform 
criteria shall be applied to approving similar shipments for Line 
Release at all ports, a port director may exercise his discretion to 
deny Line Release at his port even though a similar shipment may be 
approved at another port.



PART 143_SPECIAL ENTRY PROCEDURES--Table of Contents




Sec.
143.0 Scope.

                  Subpart A_Automated Broker Interface

143.1 Eligibility.
143.2 Application.
143.3 Action on application.
143.4 Confidentiality of data.
143.5 System performance requirements.
143.6 Failure to maintain performance standards.
143.7 Revocation of ABI participation.
143.8 Appeal of suspension or revocation.

                      Subpart B_Appraisement Entry

143.11 Merchandise eligible for appraisement entry.
143.12 Form of entry.
143.13 Documents to be presented with entry.
143.14 Payment of additional expenses.
143.15 Deposit of estimated duties and taxes.
143.16 Substitution of warehouse entry.

                        Subpart C_Informal Entry

143.21 Merchandise eligible for informal entry.
143.22 Formal entry may be required.
143.23 Form of entry.
143.24 Preparation of Customs Form 7501 and Customs Form 368 or 368A 
          (serially numbered).
143.25 Information on entry form.
143.26 Party who may make informal entry of merchandise.
143.27 Invoices.
143.28 Deposit of duties and release of merchandise.

                    Subpart D_Electronic Entry Filing

143.31 Applicability.
143.32 Definitions.
143.33 Eligibility criteria for participation.
143.34 Procedure for electronic immediate delivery or entry.
143.35 Procedure for electronic entry summary.
143.36 Form of immediate delivery, entry and entry summary.
143.37 Retention of records.
143.38 [Reserved]
143.39 Penalties.

    Authority: 19 U.S.C. 66, 1481, 1484, 1498, 1624.

    Source: T.D. 73-175, 38 FR 17463, July 2, 1973, unless otherwise 
noted.



Sec. 143.0  Scope.

    This part sets forth the requirements and procedures for 
participation in the Automated Broker Interface (ABI) and for the 
clearance of imported merchandise under appraisement and informal 
entries as well as under electronic entry filing, which are in addition 
to the general requirements and procedures for all entries set forth in 
part 141 of this chapter. More specific requirements and procedures are 
set forth elsewhere in this chapter; for example, in part 145 for 
importations by mail, and in part 10 for merchandise

[[Page 59]]

conditionally free of duty or subject to a reduced rate.

[T.D. 73-175, 38 FR 17463, July 2, 1973, as amended by T.D. 90-92, 55 FR 
49884, Dec. 3, 1990]



                  Subpart A_Automated Broker Interface

    Source: T.D. 90-92, 55 FR 49884, Dec. 3, 1990, unless otherwise 
noted.



Sec. 143.1  Eligibility.

    The Automated Broker Interface (ABI) is a module of the Customs 
Automated Commercial System (ACS) which allows participants to transmit 
data electronically to Customs through ABI and to receive transmissions 
through ACS. Its purposes are to improve administrative efficiency, 
enhance enforcement of Customs and related laws, lower costs and 
expedite the release of cargo. Participants in ABI may be:
    (a) Customs brokers as defined in Sec. 111.1 of this chapter;
    (b) Importers as defined in Sec. 101.1 of this chapter; and
    (c) ABI service bureaus, that is, an individual, partnership, 
association or corporation which provides communications facilities and 
data processing services for brokers and importers, but which does not 
engage in the conduct of customs business as defined in Sec. 111.1(c) 
of this chapter.

[T.D. 90-92, 55 FR 49884, Dec. 3, 1990, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997; T.D. 01-14, 66 FR 8767, Feb. 2, 2001]



Sec. 143.2  Application.

    A prospective participant in ABI shall submit a letter of intent to 
the port director closest to his principal office, with a copy to the 
Assistant Commissioner, Information and Technology, or designee. The 
letter of intent shall set forth a commitment to develop, maintain and 
adhere to the performance requirements and operational standards of the 
ABI system in order to ensure the validity, integrity and 
confidentiality of the data transmitted. The letter of intent must also 
contain the following, as applicable:
    (a) A description of the computer hardware, communications and entry 
processing systems to be used and the estimated completion date of the 
programming;
    (b) If the participant has offices in more than one location, the 
location of each office and the estimated start-up date for each office 
listed;
    (c) The name(s) of the participant's principal management and 
contact person(s) regarding the system;
    (d) If the system is being developed or supported by a data 
processing company, the data processing company's name and the contact 
person;
    (e) The software vendor's name and the contact person; and
    (f) The participant's entry filer code and average monthly volume.



Sec. 143.3  Action on application.

    (a) Approval. Permission to use ABI will be granted by the Assistant 
Commissioner, Information and Technology, or his designee, only to those 
applicants who are not delinquent or otherwise remiss in their 
transactions with Customs and are in compliance with the ABI system 
performance procedures and standards as described in Sec. 143.5 of this 
subpart. If there is any cause to question the qualifications or fitness 
of the applicant to participate in ABI, the application may be referred 
for investigation and report. The investigation may include, but need 
not be limited to:
    (1) The accuracy of the information provided in the letter of 
intent;
    (2) The business integrity of the applicant;
    (3) The character and reputation of an individual applicant or a 
member of a partnership or an officer of an association or corporation; 
and
    (4) The character and reputation of the software vendor.
    (b) Denial. If permission to use ABI is denied to an applicant by 
the Assistant Commissioner, Information and Technology, or his designee, 
written notice, including the grounds for the denial, will be given to 
him and to the port director. The applicant may appeal the denial in the 
manner prescribed in Sec. 143.8 of this subpart and those procedures 
for handling an appeal shall apply.

[[Page 60]]



Sec. 143.4  Confidentiality of data.

    The electronic data received and exchanged by a service bureau shall 
be considered confidential, and the service bureau shall maintain the 
accuracy of data received in the process of formatting and transmitting 
such data on behalf of a filer, and shall not disclose this data or any 
information connected therewith to any persons other than the filer or 
Customs (see Sec. 111.24 of this chapter).



Sec. 143.5  System performance requirements.

    The performance requirements and operational standards for 
electronic data filing are detailed in Customs Publication 552, Customs 
And Trade Automated Interface Requirements (CATAIR), which is updated 
periodically. The User Support Services Division, Customs Headquarters, 
upon request, shall provide each prospective participant with a copy of 
this publication. Each prospective participant must demonstrate that his 
system can interface directly with the Customs computer and ensure 
accurate submission of required data. Such demonstration will include 
intensive testing of the participant's system and monitoring of its 
performance in accordance with Publication 552.



Sec. 143.6  Failure to maintain performance standards.

    ABI participants must adhere to the performance requirements and 
operational standards of the ABI system and maintain a high level of 
quality in the transmission of data, as defined in Customs Publication 
552 (CATAIR) and Customs directives and policy statements, in order to 
participate in ABI.
    (a) Probational status. A participant who does not adhere to the 
requirements and standards of the ABI system or maintain a high level of 
quality as described above may be placed on probational status. The 
participant will be notified, electronically and in writing, by the 
Director, User Support Services Division, of any action to place the 
participant on probation. The notice will specifically set forth the 
grounds for the proposed probation, and advise the participant that he 
will have 15 days from the date of the notice to show cause why the 
probationary period should not take effect. If the participant fails to 
respond within the allotted time, or fails to show to the satisfaction 
of the Director, User Support Services Division, that the probationary 
period should not take effect, the Director will notify the participant 
of the effective date of the probationary period. The length of the 
probationary period may, in the discretion of the Director, User Support 
Services Division, be extended up to a maximum of 90 days, if the 
participant's performance remains below standard, but, except for 
immediate revocation under Sec. 143.7, participation will not be 
suspended or revoked until the probationary period has lasted a minimum 
of 30 days. The participant's performance will be closely monitored 
during this time, which will include working with the participant and 
providing any necessary guidance to assist the participant in bringing 
his performance back to standard.
    (b) Suspension following probationary period. If deficiencies are 
not corrected within the probationary period, the participant will be 
suspended from operational status. The participant will be notified, 
electronically and in writing, by the Director, User Support Services 
Division, of any action to suspend participation. The notice will 
specifically set forth the grounds and effective date for the 
suspension, and the right to appeal the suspension to the Assistant 
Commissioner, Information and Technology, within 10 days following the 
date of the written notice of suspension (see Sec. 143.8).
    (c) Reinstatement following suspension. To obtain reinstatement to 
operational status, a suspended participant must submit a letter to the 
Director, User Support Services Division, stating that the deficiencies 
for which the suspension was invoked have been corrected. If, after the 
participant has demonstrated compliance with the system performance 
requirements and operational standards specified in Sec. 143.5 of this 
part, if required, the Director is satisfied that the deficiencies have 
been corrected, the participant will be reinstated.

[[Page 61]]



Sec. 143.7  Revocation of ABI participation.

    (a) Fraud or misstatement of material fact. If it is determined at 
any time that participation in the system was obtained through fraud or 
the misstatement of a material fact, the Director, Trade Compliance, 
will immediately revoke ABI participation.
    (b) Risk of significant harm to system. If the participant's 
continued use of ABI would pose a potential risk of significant harm to 
the integrity and functioning of the system, the Director, User Support 
Services Division, will immediately revoke ABI participation.
    (c) Notification to participant. The participant will be notified, 
electronically and in writing, by the applicable Director, of the 
revocation. The notice will specifically set forth the grounds and 
effective date of revocation, and the right to appeal the revocation to 
the Assistant Commissioner, Information and Technology, within 10 days 
following the date of the written notice of revocation.



Sec. 143.8  Appeal of suspension or revocation.

    If the participant files a written appeal with the Assistant 
Commissioner, Information and Technology, within 10 days following the 
date of the written notice of action to suspend or revoke participation 
as provided in Sec. Sec. 143.6 and 143.7, the suspension or revocation 
of participation shall not take effect until the appeal is decided, 
except in those cases where the Director, Trade Compliance, or the 
Director, User Support Services Division, respectively, determines that 
participation was obtained through fraud or the misstatement of a 
material fact, or that continued participation would pose a potential 
risk of significant harm to the integrity and functioning of the system. 
The Customs officer who receives the appeal shall stamp the date of 
receipt of the appeal and the stamped date is the date of receipt for 
purposes of the appeal. The Assistant Commissioner shall inform the 
participant of the date of receipt and the date that a response is due 
under this paragraph. The Assistant Commissioner shall render his 
decision to the participant, in writing, stating his reasons therefor, 
by letter mailed within 30 working days following receipt of the appeal, 
unless this period is extended with due notification to the participant.



                      Subpart B_Appraisement Entry



Sec. 143.11  Merchandise eligible for appraisement entry.

    (a) Without Commissioner's approval. An application for entry by 
appraisement may be approved by the port director without securing the 
approval of the Commissioner of Customs for any of the following 
merchandise:
    (1) Merchandise damaged on the voyage of importation, by fire or 
through marine casualty or any other cause, without fault on the part of 
the shipper;
    (2) Merchandise recovered from a wrecked or stranded vessel;
    (3) Household effects used abroad and personal effects, not imported 
in pursuance of a purchase or agreement for purchase and not intended 
for sale;
    (4) Articles sent by persons in foreign countries as gifts to 
persons in the United States;
    (5) Tools of trade of a person arriving in the United States;
    (6) Personal effects of citizens of the United States who have died 
in a foreign country; and
    (7) Any of the following articles, which are deemed in accordance 
with section 498(a)(10), Tariff Act of 1930, as amended (19 U.S.C. 
1498(a)(10)), to be articles the value of which cannot be declared:
    (i) Articles which are secondhand;
    (ii) Articles which have become deteriorated or damaged before 
importation otherwise than as specified in paragraph (a)(1) of this 
section;
    (iii) Articles which are not the subject of a commercial 
transaction; and
    (iv) So-called overages or dock accumulations which cannot be 
identified with any particular shipment.
    (b) With Commissioner's approval. Entry by appraisement for 
merchandise not provided for in paragraph (a) of this section shall be 
allowed only with the approval of the Commissioner of Customs. Each 
request for such approval shall be filed in triplicate with

[[Page 62]]

the port director and shall state in detail the reasons for the request 
for entry by appraisement.
    (c) Merchandise not eligible. An application for an entry by 
appraisement shall not be approved after the merchandise has been 
appraised or released from Customs custody, nor for damaged merchandise 
when the damage occurs after importation.



Sec. 143.12  Form of entry.

    Application for an entry by appraisement shall be made in triplicate 
on the entry summary, Customs Form 7501.

[T.D. 84-129, 49 FR 23168, June 5, 1984]



Sec. 143.13  Documents to be presented with entry.

    The importer shall in all cases present:
    (a) Any bills or statements of cost relating to the merchandise 
which may be in his possession; and
    (b) A declaration that he has no other information as to the value 
of the articles and is unable to obtain such information or to determine 
the value of the articles for the purpose of making formal entry 
thereof.



Sec. 143.14  Payment of additional expenses.

    Any additional expenses for cartage, storage, or labor occasioned by 
reason of an entry by appraisement shall be borne by the importer.



Sec. 143.15  Deposit of estimated duties and taxes.

    Estimated duties shall be deposited in accordance with subpart G of 
part 141 of this chapter before the merchandise is released from Customs 
custody.



Sec. 143.16  Substitution of warehouse entry.

    The importer may substitute an entry for warehouse at any time 
within 1 year from the date of importation, provided the merchandise has 
remained in continuous Customs custody.



                        Subpart C_Informal Entry



Sec. 143.21  Merchandise eligible for informal entry.

    The following types of merchandise are among those which may be 
entered under informal entry (see Sec. Sec. 141.52 and 143.22 of this 
chapter):
    (a) Shipments of merchandise not exceeding $2,000 in value (except 
for articles valued in excess of $250 classified in Sections VII, VIII, 
XI, and XII; Chapter 94 and Chapter 99, Subchapters III and IV, HTSUS);
    (b) Any installment, not exceeding $2,000 in value, of a shipment 
arriving at different times, as described in Sec. 141.82 of this 
chapter;
    (c) A portion of one consignment, when such portion does not exceed 
$2,000 in value and may be entered separately pursuant to Sec. 141.51 
of this chapter. This paragraph does not apply to shipments of articles 
valued in excess of $250 classified under subheadings from Sections VII, 
VIII, XI, and XII; or in Chapter 94 and Chapter 99, Subchapters III and 
IV, HTSUS;
    (d) Household or personal effects or tools of trade entitled to free 
entry under Chapter 98, Subchapter IV, HTSUS (19 U.S.C. 1202);
    (e) Household effects used abroad and personal effects whether or 
not entitled to free entry, not imported in pursuance of a purchase or 
agreement for purchase and not intended for sale;
    (f) Household and personal effects described in paragraph (e) of 
this section when entered under subheading 9802.00.40, HTSUS (19 U.S.C. 
1202), and the value of the repairs and alterations thereto does not 
exceed $2,000;
    (g) Personal effects not exceeding $2,000 in value of citizens of 
the United States who have died abroad;
    (h) Books and other articles classifiable under subheadings 
4903.00.00, 4904.00.00, 4905.91.00, 4905.99.00, 9701.10.00, 9701.90.00, 
9810.00.05, HTSUS (19 U.S.C. 1202), imported by a library or other 
institution described in subheadings 9810.00.05 and 9810.00.30, HTSUS 
(19 U.S.C. 1202);
    (i) Theatrical scenery, properties, and effects, motion-picture 
films, commercial travelers' samples and professional books, implements, 
instruments,

[[Page 63]]

and tools of trade, occupation, or employment, as set forth in Sec. 
10.68 of this chapter;
    (j) Merchandise which, upon written application to the Commissioner 
of Customs, is determined to be unique in character or design such that 
the value thereof cannot be declared and which is not intended for sale 
or imported in pursuance of a purchase or agreement for purchase; and
    (k) Products of the United States, when the aggregate value of the 
shipment does not exceed $10,000 and the products are imported--
    (1) For the purposes of repair or alteration prior to reexportation, 
or
    (2) After having been either rejected or returned by the foreign 
purchaser to the United States for credit.
    (l) Shipments of merchandise qualifying for the administrative 
exemptions under 19 U.S.C. 1321(a)(2) and provided for in--
    (1) Section 10.151 or 145.31 of this chapter (certain importations 
not exceeding $200 in value);
    (2) Section 10.152 or 145.32 of this chapter (certain bona-fide 
gifts not exceeding $100 in value ($200 in the case of articles sent 
from a person in the Virgin Islands, Guam, or American Samoa)); or
    (3) Section 148.51 or 148.64 of this chapter (certain personal or 
household articles not exceeding $200 in value).

[T.D. 73-175, 38 FR 17463, July 2, 1973]

    Editorial Note: For Federal Register citations affecting Sec. 
143.21, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 143.22  Formal entry may be required.

    The port director may require a formal consumption or appraisement 
entry for any merchandise if deemed necessary for: (a) Import 
admissibility enforcement purposes, (b) revenue protection, or (c) the 
efficient conduct of Customs business. Individual shipments for the same 
consignee, when such shipments are valued at $2,000 or less, may be 
consolidated on one such entry.

[T.D. 73-175, 38 FR 17463, July 2, 1973, as amended by T.D. 84-171, 49 
FR 31253, Aug. 3, 1984; T.D. 85-38, 50 FR 8723, Mar. 5, 1985; T.D. 85-
123, 50 FR 29955, July 23, 1985; T.D. 89-82, 54 FR 36026, Aug. 31, 1989; 
T.D. 98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 143.23  Form of entry.

    Except for the types of merchandise listed below which may be 
entered on the forms indicated, merchandise to be entered informally 
shall be entered on a Customs Form 368 or 368A, (serially numbered) or 
Customs Form 7501, or, if authorized by the port director, upon the 
presentation of a commercial invoice which contains the following 
declaration, signed by the importer or his agent:

    I declare that the information on this invoice is accurate to the 
best of my knowledge and belief; that the invoice quantities are true 
and correct manifest quantities; and that I have not received and do not 
know of any invoice other than this one.

    (a) Articles in passengers' baggage which may be cleared on a 
baggage declaration in accordance with subpart B of part 148 of this 
chapter;
    (b) Products of the United States being returned for which clearance 
on Customs Form 3311 is prescribed by Sec. 10.1 of this chapter;
    (c) Personal effects and tools of trade for which clearance on 
Customs Form 3299 is prescribed by Sec. 148.6 of this chapter; and
    (d) Shipments not exceeding $2,000 in value (except for articles 
valued in excess of $250 classified in Sections VII, VIII, XI, and XII; 
Chapter 94; and Chapter 99, Subchapter III and IV, Harmonized Tariff 
Schedule of the United States) which are either (1) unconditionally free 
of duty and not subject to any quota or internal revenue tax, or (2) 
conditionally free (other than shipments of merchandise provided for in 
paragraph (g) of this section) and all conditions for free entry are met 
at the time of entry, which may be released upon the filing by the 
importer on Customs Form 7523, in duplicate, supported by evidence of 
the right to make entry.

[[Page 64]]

    (e) Merchandise for which informal entry can be made on a different 
form as prescribed elsewhere in this chapter.
    (f) Merchandise released under the immediate delivery procedure or 
the entry documentation required by Sec. 142.3(a), and entry is made on 
Customs Form 7501, annotated ``Informal Entry'' in the upper right hand 
corner.
    (g) Merchandise, regardless of value, which is imported for 
noncommercial purposes, which qualifies for entry free of duty under the 
Generalized System of Preferences (see Sec. Sec. 10.171 through 10.178 
of this chapter), and for which informal entry may be made on Customs 
Form 7523, in duplicate.
    (h) Products of the United States being returned for which informal 
entry is permitted by Sec. 143.21(j) may be cleared as follows:
    (1) For products of the United States returned for the purposes of 
repair or alteration prior to reexportation. Customs Form 3311 will 
serve as informal entry.
    (2) For products of the United States after having been either 
rejected or returned by the foreign purchaser for credit, Customs Form 
7501, annotated ``informal entry'' in the upper right hand corner, and 
Customs Form 3311 will serve as informal entry.
    (i) A shipment of merchandise not exceeding $2,000 in value which is 
imported by an express consignment operator or carrier and which meets 
the requirements in Sec. 128.24 of this chapter may be entered as 
provided in that section.
    (j) Except for mail importations (see Sec. Sec. 145.31 and 145.32 
of this chapter), or in the case of personal written or oral 
declarations (see Sec. Sec. 148.12, 148.13 and 148.62 of this chapter), 
a shipment of merchandise not exceeding $200 in value which qualifies 
for informal entry under 19 U.S.C. 1498 and meets the requirements in 
Sec. 10.151 or Sec. 10.152 of this chapter may be entered by 
presenting the bill of lading or a manifest listing each bill of lading 
(see Sec. Sec. 10.151, 10.152 and 128.24(e) of this chapter). The 
following information is required to be filed as a part of such entry:
    (1) Country of origin of the merchandise;
    (2) Shipper name, address and country;
    (3) Ultimate consignee name and address;
    (4) Specific description of the merchandise;
    (5) Quantity;
    (6) Shipping weight; and
    (7) Value.

[T.D. 73-175, 38 FR 17463, July 2, 1973]

    Editorial Note: For Federal Register citations affecting Sec. 
143.23, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 143.24  Preparation of Customs Form 7501 and Customs Form 368 or 
368A (serially numbered).

    Customs Form 7501 may be prepared by importers or their agents or by 
Customs officers when it can be presented to a Customs cashier for 
payment of duties and taxes and for numbering of the entry before the 
merchandise is examined by a Customs officer. Where there is no Customs 
cashier, Customs Form 368 or 368A (serially numbered) or Customs Form 
7501 must be used, and it shall be prepared by a Customs officer unless 
the form can be prepared under his control by the importer or agent for 
immediate use in clearing merchandise under the informal entry 
procedure. The conditions for the preparation of Customs Form 7501 by 
importers or their agents, as described in the first sentence of this 
section, do not apply to the acceptance of these entries for shipments 
not exceeding $250 in value released under a special permit for 
immediate delivery in accordance with part 142 of this chapter.

[T.D. 84-129, 49 FR 23168, June 5, 1984, as amended by T.D. 87-75, 52 FR 
26142, July 13, 1987; T.D. 89-82, 54 FR 36026, Aug. 31, 1989; T.D. 92-
56, 57 FR 24944, June 12, 1992]



Sec. 143.25  Information on entry form.

    Each Customs Form 368 or 368A (serially numbered) or, where used, 
Customs Form 7501 shall contain an adequate description of the 
merchandise and the item number of the Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202), under which the merchandise is 
classified.

[T.D. 76-213, 41 FR 31812, July 30, 1976, as amended by T.D. 87-75, 52 
FR 26142, July 13, 1987; T.D. 89-1, 53 FR 51263, Dec. 21, 1988; T.D. 92-
56, 57 FR 24944, June 12, 1992]

[[Page 65]]



Sec. 143.26  Party who may make informal entry of merchandise.

    (a) Shipments valued between $200 and $2,000. A shipment of 
merchandise valued between $200 and $2,000 which qualifies for informal 
entry under 19 U.S.C. 1498 may be entered, using reasonable care, by the 
owner or purchaser of the shipment or, when appropriately designated by 
the owner, purchaser, or consignee of the shipment, a Customs broker 
licensed under 19 U.S.C. 1641.
    (b) Shipments valued at $200 or less. A shipment of merchandise 
valued at $200 or less which qualifies for informal entry under 19 
U.S.C. 1498 and meets the requirements in 19 U.S.C. 1321(a)(2) (see 
Sec. Sec. 10.151, 10.152, 10.153, 145.31, 145.32, 148.51, 148.64, of 
this chapter) may be entered, using reasonable care, by the owner, 
purchaser, or consignee of the shipment or, when appropriatel y 
designated by one of these persons, a Customs broker licensed under 19 
U.S.C. 1641.

[T.D. 94-51, 59 FR 30296, June 13, 1994, as amended by T.D. 95-31, 60 FR 
18991, Apr. 14, 1995; T.D. 98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 143.27  Invoices.

    In the case of merchandise imported pursuant to a purchase or 
agreement to purchase, or intended for sale and entered informally, the 
importer shall produce the commercial invoice covering the transaction 
or, in the absence thereof, an itemized statement of value.

[T.D. 85-39, 50 FR 9612, Mar. 11, 1985]



Sec. 143.28  Deposit of duties and release of merchandise.

    Unless statement processing and ACH are used pursuant to Sec. 24.25 
of this chapter, the estimated duties and taxes, if any, shall be 
deposited at the time the entry is presented and accepted by a Customs 
Officer, whether at the customhouse or elsewhere. If upon examination of 
the merchandise further duties or taxes are found due, they shall be 
deposited before release of the merchandise by Customs. When the entry 
is presented elsewhere than where the merchandise is to be examined, the 
permit copy shall be delivered through proper channels to the Customs 
officer who will examine the merchandise.

[T.D. 73-175, 38 FR 17463, July 2, 1973, as amended by T.D. 89-104, 54 
FR 50499, Dec. 7, 1989]



                    Subpart D_Electronic Entry Filing

    Source: T.D. 90-92, 55 FR 49886, Dec. 3, 1990, unless otherwise 
noted.



Sec. 143.31  Applicability.

    This subpart sets forth general requirements for the entry of 
imported merchandise processed electronically through the Customs 
Automated Commercial System (ACS). Entries processed electronically are 
subject to the documentation, document retention and document 
retrievability requirements of this chapter as well as the general entry 
requirements of parts 141 and 142. Use of this system is voluntary and 
optional on behalf of the filer. Customs does not contemplate that 
processing of non-electronic filings shall be delayed.



Sec. 143.32  Definitions.

    The following are definitions for purposes of this subpart D:
    (a) ACS. ``ACS'' means the Automated Commercial System and refers to 
Customs integrated comprehensive tracking system for the acquisition, 
processing and distribution of import data.
    (b) ABI. ``ABI'' means the Automated Broker Interface and refers to 
a module of ACS that allows entry filers to transmit immediate delivery, 
entry and entry summary data electronically to Customs through ACS and 
to receive transmissions from ACS.
    (c) AII. ``AII'' means Automated Invoice Interface and is a method 
of transmitting detailed invoice data through ABI.
    (d) Broker. ``Broker'' means a Customs broker licensed under part 
111 of this chapter.
    (e) Certification. ``Certification'' means the electronic equivalent 
of a signature for data transmitted through ABI. This electronic 
(facsimile) signature must be transmitted as part of the immediate 
delivery, entry or entry

[[Page 66]]

summary data. Such data is referred to as ``certified''.
    (f) Data. ``Data'' when used in conjunction with immediate delivery, 
entry and/or entry summary means the information required to be 
submitted with the immediate delivery, entry and/or entry summary, 
respectively, in accordance with the CATAIR and/or Customs Headquarters 
directives. It does not mean the actual paper documents, but includes 
all of the information required to be in such documents.
    (g) Documentation. ``Documentation'' when used in conjunction with 
immediate delivery, entry and/or entry summary means the documents set 
forth in Sec. 142.3 of this chapter, required to be submitted as part 
of an application for immediate delivery, entry and/or entry summary, 
but does not include the Customs Forms 7501, 3461 (or alternative 
forms).
    (h) EDIFACT. ``EDIFACT'' means the Electronic Data Interchange for 
Administration, Commerce and Transport which provides an electronic 
capability to transmit detailed CF 3461, CF 7501 and invoice data.
    (i) Electronic immediate delivery. ``Electronic immediate delivery'' 
means the electronic transmission of CF 3461 or CF 3461 alternate (CF 
3461 ALT) data utilizing ACS in order to obtain the release of goods 
under immediate delivery.
    (j) Electronic entry. ``Electronic entry'' means the electronic 
transmission of CF 3461, CF 3461 ALT, or CF 7501 data utilizing ACS in 
order to obtain the release of merchandise from Customs custody.
    (k) Electronic entry summary. ``Electronic entry summary'' means the 
electronic transmission of CF 7501 data utilizing ACS for the purpose of 
duty assessment and the collection of statistical data.
    (l) Filer. ``Filer'' means the party certifying the electronic 
filing of the application for immediate delivery, entry or entry 
summary. Filer may be a broker or an importer of record filing his own 
entries through ABI without the use of a broker.
    (m) Preclassification/binding ruling number. ``Preclassification/
binding ruling number'' means the system by which classifications are 
approved and assigned a unique identifying number. This number may be 
transmitted as part of the ABI data.
    (n) Records. ``Records'' means the records as defined in part 163 of 
this chapter, which are required to be maintained pursuant to this 
chapter.
    (o) Selectivity criteria. ``Selectivity criteria'' means the 
categories of information which guide Customs judgment in evaluating and 
assessing the risk of an immediate delivery, entry or entry summary 
transaction. Based upon these criteria, immediate delivery or entry 
transactions will be subject to either general examination, general 
examination with document review, or intensive examination. Entry 
summary transactions will be subject to either system review or summary 
document review. General examination (entry/immediate delivery) and 
system review (entry summary) procedures will constitute electronic 
processing provided all conditions necessary for electronic processing 
contained in this part are met.
    (p) Statement processing. ``Statement processing'' means the method 
of collection and accounting within, ACS which allows a filer to pay for 
more than one entry summary with one payment. ACS/ABI generates the 
statement, which is transmitted electronically to the filer, consisting 
of a list of entry summaries and the amount of duties, taxes or fees, if 
any, due for payment. Upon payment and collection of the statement, 
those entry summaries designated as electronic will be scheduled for 
liquidation (see Sec. 24.25 of this chapter).

[T.D. 90-92, 55 FR 49886, Dec. 3, 1990, as amended by T.D. 98-56, 63 FR 
32945, June 16, 1998]



Sec. 143.33  Eligibility criteria for participation.

    To be eligible for electronic immediate delivery, electronic entry 
and electronic entry summary, the filer must be qualified to use the ABI 
feature of ACS, as prescribed in Sec. 143.5. To be eligible for 
electronic entry summary processing, filers must be authorized to use 
the ABI statement processing system. Filers not so authorized would have 
to follow the electronic entry summary with the submission of

[[Page 67]]

an entry summary in paper form along with any duties, taxes or fees 
accruing.



Sec. 143.34  Procedure for electronic immediate delivery or entry.

    To file immediate delivery or entry electronically, the filer will 
submit certified immediate delivery or entry data electronically through 
ABI. Data will be validated and, if found error-free, will be accepted. 
If it is determined through selectivity criteria and review of data that 
documentation is not required to be physically submitted in paper form, 
merchandise will be released and Customs will electronically notify the 
filer.



Sec. 143.35  Procedure for electronic entry summary.

    In order to obtain entry summary processing electronically, the 
filer will submit certified entry summary data electronically through 
ABI. Data will be validated and, if the transmission is found error-
free, will be accepted. If it is determined through selectivity criteria 
and review of data that documentation is required for further processing 
of the entry summary, Customs will so notify the filer. Documentation 
submitted before being requested by Customs will not be accepted or 
retained by Customs. The entry summary will be scheduled for liquidation 
once payment is made under statement processing (see Sec. 24.25 of this 
chapter).

[T.D. 98-56, 63 FR 32945, June 16, 1998]



Sec. 143.36  Form of immediate delivery, entry and entry summary.

    (a) Electronic form of data. If Customs determines that the 
immediate delivery, entry or entry summary data is satisfactory under 
Sec. Sec. 143.34 and 143.35, the electronic form of the immediate 
delivery, entry or entry summary through ABI shall be deemed to satisfy 
all filing requirements under this part. Further, the filer will not be 
required to produce or physically submit any official Customs forms of 
immediate delivery, entry or entry summary. The filer is responsible for 
the accuracy of the data submitted electronically to the same extent as 
if the documents were produced, signed and physically submitted by the 
filer (see Sec. 111.32 of this chapter).
    (b) Accuracy of data. Participation constitutes declaration by the 
electronic filer that, to the best of his knowledge, all transactions 
filed electronically fully disclose prices, values, quantities, rebates, 
drawbacks, fees, commissions, and royalties, which are true and correct, 
and that all goods or services provided either free or at a reduced cost 
to the seller of the merchandise are fully disclosed (see Sec. 111.32 
of this chapter).
    (c) Submission of invoice. The invoice will be retained by the filer 
unless requested by Customs. If the invoice is submitted by the filer 
before a request is made by Customs, it will not be accepted or retained 
by Customs. When Customs requests presentation of the invoice, invoice 
data must be submitted in one of the following forms:
    (1) Paper form;
    (2) AII or EDIFACT format.
    (3) In appropriate cases where a party has obtained a 
preclassification/binding ruling number covering the merchandise being 
entered, or is a participant in a pre-approval program, and information 
is electronically transmitted which is adequate for the examination of 
the merchandise and the determination of duties, and for verifying the 
information required for statistical purposes by Sec. 141.61(e) of this 
chapter, such information will satisfy the invoice requirement of this 
part and part 141 of this chapter.

[T.D. 90-92, 55 FR 49886, Dec. 3, 1990, as amended by T.D. 98-56, 63 FR 
32945, June 16, 1998]



Sec. 143.37  Retention of records.

    (a) Record maintenance requirements. All records received or 
generated by a broker or importer must be maintained in accordance with 
part 163 of this chapter.
    (b) Termination of broker's responsibility. If the broker is 
discharged by the importer, he shall retain the documentation for those 
deliveries, entries or entry summaries filed by him prior to such 
discharge. Documentation in possession of a broker at the time of

[[Page 68]]

permanent termination of the brokerage business shall be accounted for 
pursuant to Sec. 111.30(e) of this chapter.

[T.D. 90-92, 55 FR 49886, Dec. 3, 1990, as amended by T.D. 98-56, 63 FR 
32945, June 16, 1998]



Sec. 143.38  [Reserved]



Sec. 143.39  Penalties.

    (a) Brokers. Brokers unable to produce records requested by Customs 
under this chapter will be subject to disciplinary action or penalties 
pursuant to part 111 or part 163 of this chapter.
    (b) Importers. Importers unable to produce records requested by 
Customs under this chapter will be subject to penalties pursuant to part 
163 of this chapter.

[T.D. 98-56, 63 FR 32945, June 16, 1998]



PART 144_WAREHOUSE AND REWAREHOUSE ENTRIES AND WITHDRAWALS--Table of 
Contents




Sec.
144.0 Scope.

                      Subpart A_General Provisions

144.1 Merchandise eligible for warehousing.
144.2 Liability of importers and sureties.
144.3 Allowance for damage.
144.4 Allowance for abandoned, destroyed, or exported merchandise.
144.5 Period of warehousing.
144.6 [Reserved]
144.7 Disposition of merchandise after expiration of warehousing period.

        Subpart B_Requirements and Procedures for Warehouse Entry

144.11 Form of entry.
144.12 Contents of entry summary; estimated duties.
144.13 Bond requirements.
144.14 Removal to warehouse.
144.15 Entry and withdrawal from Customs bonded warehouses of distilled 
          spirits.

   Subpart C_Transfer of Right to Withdraw Merchandise from Warehouse

144.21 Conditions for transfer.
144.22 Endorsement of transfer on withdrawal form.
144.23 Endorsement in blank.
144.24 Transferee's bond.
144.25 Deposit of forms.
144.26 Further transfer.
144.27 Withdrawal from warehouse by transferee.
144.28 Protest by transferee.

                  Subpart D_Withdrawals from Warehouse

144.31 Right to withdraw.
144.32 Statement of quantity; charges and liens.
144.33 Minimum quantities to be withdrawn.
144.34 Transfer to another warehouse.
144.35 Withdrawal of vessel and aircraft supplies and equipment.
144.36 Withdrawal for transportation.
144.37 Withdrawal for exportation.
144.38 Withdrawal for consumption.
144.39 Permit to transfer and withdraw merchandise.

                      Subpart E_Rewarehouse Entries

144.41 Entry for rewarehouse.
144.42 Combined entry for rewarehouse and withdrawal for consumption.

    Authority: 19 U.S.C. 66, 1484, 1557, 1559, 1624.
    Section 144.3 also issued under 19 U.S.C. 1563;
    Section 144.33 also issued under 19 U.S.C. 1562;
    Section 144.37 also issued under 19 U.S.C. 1555, 1562.

    Source: T.D. 73-175, 38 FR 17464, July 2, 1973, unless otherwise 
noted.



Sec. 144.0  Scope.

    This part contains regulations pertaining to the entry and 
withdrawal of merchandise under the provisions of section 557, Tariff 
Act of 1930, as amended (19 U.S.C. 1557), which among other things 
provides that articles subject to duty may be entered for warehousing 
and deposited in a bonded warehouse at the expense and risk of the 
owner, importer, or consignee, and withdrawn from warehouse for 
consumption upon payment of duties and charges. The requirements and 
procedures set forth in this part are in addition to the general 
requirements and procedures for all entries set forth in part 141 of 
this chapter. Regulations pertaining to manipulation in warehouse, 
manufacturing warehouses, and smelting and refining warehouses are set 
forth in part 19 of this chapter.

[[Page 69]]



                      Subpart A_General Provisions



Sec. 144.1  Merchandise eligible for warehousing.

    (a) Types of merchandise. Any merchandise subject to duty may be 
entered for warehousing except for perishable merchandise and explosive 
substances (other than firecrackers). Dangerous and highly flammable 
merchandise, though not classified as explosive, shall not be entered 
for warehouse without the written consent of the insurance company 
insuring the warehouse in which the merchandise is to be stored.
    (b) [Reserved]
    (c) Merchandise previously entered. If merchandise has been entered 
under other than a warehouse entry and has remained in continuous 
Customs custody, a warehouse entry may be substituted for the previous 
entry. If estimated duties were deposited with the superseded previous 
entry, that entry shall be liquidated for refund of the estimated duties 
without awaiting liquidation of the warehouse entry. All copies of the 
warehouse entry shall bear the following notation: This entry is in 
substitution of ------------------------; entry No. ------------, dated 
------------------------.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 82-204, 47 
FR 49376, Nov. 1, 1982; T.D. 84-149, 49 FR 28699, July 16, 1984]



Sec. 144.2  Liability of importers and sureties.

    The importer of merchandise entered for warehouse is liable for the 
payment of all unpaid duties not only as principal on the bond filed on 
Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter, but also by reason of his personal liability as 
consignee. Under the conditions of the bond, the sureties on the bond 
shall be held liable for the payment of duties and Customs charges not 
paid by the principal on the bond, whether such duties and charges are 
finally ascertained before the merchandise is withdrawn from Customs 
custody or thereafter. Liability may be transferred in part along with 
the right to withdraw the merchandise, in accordance with Subpart C of 
this part.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]



Sec. 144.3  Allowance for damage.

    No abatement or allowance of duties shall be made on account of 
damage, loss, or deterioration of the merchandise while in warehouse, 
except as provided for by law (see part 158 of this chapter).



Sec. 144.4  Allowance for abandoned, destroyed, or exported merchandise.

    Allowance in duties shall be made for merchandise in warehouse which 
is abandoned or destroyed in accordance with Sec. 158.43 of this 
chapter or exported in accordance with Sec. 144.37.



Sec. 144.5  Period of warehousing.

    Merchandise shall not remain in a bonded warehouse beyond 5 years 
from the date of importation.

[T.D. 86-118, 51 FR 22516, June 20, 1986]



Sec. 144.6  [Reserved]



Sec. 144.7  Disposition of merchandise after expiration of warehousing 
period.

    Merchandise remaining in a bonded warehouse after the expiration of 
the warehousing period shall be disposed of in accordance with Sec. 
127.14 of this chapter.

[T.D. 79-221, 44 FR 46828, Aug. 9, 1979]



        Subpart B_Requirements and Procedures for Warehouse Entry



Sec. 144.11  Form of entry.

    (a) Entry. The documentation required by Sec. 142.3 of this chapter 
shall be filed at the time of entry. If the entry summary, Customs Form 
7501, is filed at the time of entry for merchandise to be entered for 
warehouse, it shall serve as both the entry and the entry summary, and 
Customs Form 3461 or 7533 shall not be required. If the entry summary is 
not filed at the time of entry, it shall be filed within the time limit 
prescribed by Sec. 142.12 of this chapter. If

[[Page 70]]

merchandise is released before the filing of the entry summary, the 
importer shall have a bond on file, as prescribed by Sec. 142.4 of this 
chapter.
    (b) Customs Form 7501. The entry summary for merchandise entered for 
warehouse shall be executed in triplicate on Customs Form 7501, 
appropriately modified, and shall include all of the statistical 
information required by Sec. 141.61(e) of this chapter. The port 
director may require an extra copy or copies of Customs Form 7501, 
annotated ``PERMIT'' for use in connection with delivery of the 
merchandise to the bonded warehouse.
    (c) Designation of warehouse. The importer shall designate on the 
entry summary, Customs Form 7501, the bonded warehouse in which he 
desires his merchandise deposited.
    (d) Specification list. When packages which are not uniform in 
contents, quantities, values, or rates of duties are grouped together as 
one item on an entry summary, a specification list (original only) shall 
be furnished with the entry summary, showing separately opposite the 
marks or numbers of each package, the quantity of each class of 
merchandise, the entered value of each class, and the rates of duty 
claimed for each. However, a specification list is not needed if one 
withdrawal is to be filed for all the merchandise covered by the entry 
summary.

[T.D. 79-221, 44 FR 46828, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23168, June 5, 1984]



Sec. 144.12  Contents of entry summary; estimated duties.

    The entry summary, Customs Form 7501, shall show the value, 
classification, and rate of duty as approved by the port director at the 
time the entry summary is filed. However, no deposit of estimated duties 
shall be required until the merchandise is withdrawn for consumption.

[T.D. 79-221, 44 FR 46828, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23168, June 5, 1984]



Sec. 144.13  Bond requirements.

    A bond on Customs Form 301, containing the bond conditions set forth 
in Sec. 113.62 of this chapter shall be filed in the amount required by 
the port director to support the entry documentation.

[T.D, 84-213, 49 FR 41185, Oct. 19, 1984]



Sec. 144.14  Removal to warehouse.

    When the entry summary, Customs Form 7501, and the bond on Customs 
Form 301, containing the bond conditions set forth in Sec. 113.62 of 
this chapter have been filed, the merchandise shall be sent to the 
bonded warehouse, except for:
    (a) Merchandise for which an immediate withdrawal if filed, or
    (b) Packages designated for examination elsewhere than at the 
warehouse, which shall be sent to the warehouse after examination.

[T.D. 79-221, 44 FR 46828, Aug. 9, 1979, as amended by T.D. 84-129, 49 
FR 23168, June 5, 1984; T.D. 84-213, 49 FR 41185, Oct. 19, 1984]



Sec. 144.15  Entry and withdrawal from Customs bonded warehouses of 
distilled spirits.

    (a) Distilled spirits entered in warehouse under section 5066(a), 
Internal Revenue Code--(1) General rule. Except as otherwise provided in 
this section, distilled spirits entered into Customs bonded warehouse in 
accordance with section 5066(a), Internal Revenue Code, as amended (26 
U.S.C. 5066(a)), shall be treated in the same manner as any other 
merchandise entered for warehouse.
    (2) Withdrawal from warehouse for domestic consumption. Distilled 
spirits entered in warehouse under this paragraph may be withdrawn from 
warehouse for domestic consumption under section 5066(c), Internal 
Revenue Code, as amended (26 U.S.C. 5066(c)). In this case, the 
distilled spirits shall be subject to duty as American goods exported 
and returned under subheading 9801.00.80, Harmonized Tariff Schedule of 
the United States (19 U.S.C. 1202).
    (b) Distilled spirits transferred from a manufacturing warehouse to 
a storage warehouse under section 311, Tariff Act of 1930--(1) 
Prohibition on withdrawal from warehouse for domestic consumption. 
Domestic distilled spirits which have been transferred from a Customs 
bonded manufacturing warehouse, Class 6, to a Customs bonded storage 
warehouse, Class 2 or 3, in accordance with section

[[Page 71]]

311, Tariff Act of 1930, as amended (19 U.S.C. 1311), may not be 
withdrawn under section 5066(c) of the Internal Revenue Code, as amended 
(26 U.S.C. 5066(c)), for domestic consumption.
    (2) Procedure governing transfer of distilled spirits from 
manufacturing warehouse to storage warehouse. For procedure concerning 
the transfer of such distilled spirits from Customs bonded manufacturing 
warehouse, Class 6, to Customs bonded storage warehouse, see Sec. 
19.15(g)(2) of this chapter.
    (c) Distilled spirits entered under section 5214(a)(9), Internal 
Revenue Code--(1) General rule. Distilled spirits may be entered into a 
Customs bonded storage warehouse under section 5214(a)(9), Internal 
Revenue Code, as amended (26 U.S.C. 5214(a)(9)), in the same manner as 
any other merchandise is entered for warehouse, unless otherwise 
provided in this section.
    (2) Withdrawal only for exportation. Distilled spirits warehoused 
under section 5214(a)(9), Internal Revenue Code, may be withdrawn only 
for the purpose of exportation, either directly or after rewarehousing 
at the same or another port. The distilled spirits may not be withdrawn 
for domestic consumption.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 78-298, 43 
FR 38382, Aug. 28, 1978; T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 
84-213, 49 FR 41185, Oct. 19, 1984; T.D. 89-1, 53 FR 51263, Dec. 21, 
1988]



   Subpart C_Transfer of Right to Withdraw Merchandise from Warehouse



Sec. 144.21  Conditions for transfer.

    Under the provisions of section 557(b) Tariff Act of 1930, as 
amended (19 U.S.C. 1557(b)), the right to withdraw all or part of 
merchandise entered for warehouse may be transferred by appropriate 
endorsement on the withdrawal form, provided that the transferee files a 
bond on Customs Form 301, containing the bond conditions set forth in 
Sec. 113.62 of this chapter. Upon the deposit of the endorsed form, 
properly executed, and the transferee's bond with the Customs officer 
designated to receive such form and bond, the transferor and his 
sureties shall be relieved from all undischarged liability.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984; 49 FR 44867, Nov. 9, 1984]



Sec. 144.22  Endorsement of transfer on withdrawal form.

    Transfer of the right to withdraw merchandise entered for warehouse 
shall be established by an appropriate endorsement on the withdrawal 
form by the person primarily liable for payment of duties before the 
transfer is completed, i.e., the person who made the warehouse or 
rewarehouse entry or a transferee of the withdrawal right of such 
person. Endorsement shall be made on whichever of the following 
withdrawal forms is applicable:
    (a) Customs Form 7501 for:
    (i) A duty paid warehouse withdrawal for consumption;
    (ii) Withdrawal with no duty payment (diplomatic use);
    (iii) Merchandise to be withdrawn as vessel or aircraft supplies and 
equipment under Sec. 10.60 of this chapter or other conditionally free 
merchandise;
    (b) Customs Form 7512 for merchandise to be withdrawn for 
transportion, exportation, or transportation and exportation; or

[T.D. 82-204, 47 FR 49376, Nov. 1, 1982, as amended by T.D. 95-81, 60 FR 
52295, Oct. 6, 1995]



Sec. 144.23  Endorsement in blank.

    If the transferor wishes to do so, he may endorse the withdrawal 
form to authorize the right to withdraw the merchandise specified 
thereon but leave the space for the name of the transferee blank. A 
holder of a withdrawal form so endorsed and otherwise fully executed may 
insert his own name in the blank space, deposit such form and his 
transferee's bond with the Customs officer designated to receive such 
form and bond, and thereby establish his right to withdraw the 
merchandise.



Sec. 144.24  Transferee's bond.

    The transferee's bond shall be on Customs Form 301 and contain the

[[Page 72]]

bond conditions set forth in Sec. 113.62 of this chapter.

[T.D. 84-213, 49 FR 41185, Oct. 19, 1984]



Sec. 144.25  Deposit of forms.

    Either the transferor or the transferee may deposit the endorsed 
withdrawal form and transferee's bond with the Customs officer 
designated to receive such form and bond.



Sec. 144.26  Further transfer.

    The right of a transferee to withdraw the merchandise may not be 
revoked by the transferor but may be retransferred by the transferee.



Sec. 144.27  Withdrawal from warehouse by transferee.

    At any time within the warehousing period, a transferee who has 
established his right to withdraw merchandise may withdraw all or part 
of the merchandise covered by the transfer by filing any authorized kind 
of withdrawal from warehouse in accordance with subpart D of this part.



Sec. 144.28  Protest by transferee.

    (a) Entries on or after January 12, 1971. A transferee of 
merchandise entered for warehouse on or after January 12, 1971, shall 
have the right to file a protest under section 514, Tariff Act of 1930, 
as amended (19 U.S.C. 1514), to the same extent that such right would 
have been available to the transferor.
    (b) Entries prior to January 12, 1971. A transferee of merchandise 
entered for warehouse prior to January 12, 1971, shall have no right to 
file a protest, except under the conditions set forth in section 557(b), 
Tariff Act of 1930, as amended (19 U.S.C. 1557(b)), prior to the 
amendments made thereto by Pub. L. 91-685, effective January 12, 1971 
(T.D. 71-55).



                  Subpart D_Withdrawals from Warehouse



Sec. 144.31  Right to withdraw.

    Withdrawals from bonded warehouse may be made only by the person 
primarily liable for the payment of duties on the merchandise being 
withdrawn, i.e., the importer of record on the warehouse entry, the 
actual owner if an actual owner's declaration and superseding bond have 
been filed in accordance with Sec. 141.20 of this chapter, or the 
transferee if the right to withdraw the merchandise has been transferred 
in accordance with subpart C of this part. No new declaration of the 
consignee or agent is required.



Sec. 144.32  Statement of quantity; charges and liens.

    (a) On each withdrawal. Each withdrawal filed shall have indicated 
thereon, preferably in the lower part of the left-hand margin if there 
is no space designated on the form for such information, a summary 
statement of the account to which it is related. The statement shall 
indicate:
    (1) The quantity (i.e., the number of outer containers, or tons, 
etc.) in the warehouse account before the withdrawal;
    (2) The quantity being withdrawn; and
    (3) The quantity remaining in warehouse after the withdrawal. The 
quantity in each instance may be shown as a cumulative total event 
though it may include a group of varied units such as boxes, cases, or 
cartons, and may consist of more than one commodity, such as distilled 
spirits, chinaware, etc.
    (b) Transferred merchandise. When all or a portion of an original 
lot has been transferred to a new owner in accordance with subpart C of 
this part, each withdrawal by the transferee shall show only the 
quantity on hand in the transferee's name before the withdrawal, the 
quantity being withdrawn by the transferee, and the transferred quantity 
remaining in the warehouse after the withdrawal. The quantity retained 
by the original importer and the quantity transferred shall be treated 
as separate accounts.
    (c) Charges and liens. Upon receipt of an application to withdraw 
merchandise the appropriate Customs officer shall determine whether 
there are any cartage, storage, labor, or any other charges due the 
Government in connection with the goods remaining unpaid or whether 
there is on file any notice of lien filed by a carrier. If there are no 
charges or liens or all charges and liens

[[Page 73]]

have been satisfied, and all other requirements of law or regulations 
have been met, the application to withdraw shall be approved.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 82-204, 47 
FR 49376, Nov. 1, 1982; T.D. 86-118, 51 FR 22516, June 20, 1986]



Sec. 144.33  Minimum quantities to be withdrawn.

    Unless by special authority of the Commissioner of Customs, 
merchandise shall not be withdrawn from bonded warehouse in quantities 
less than an entire bale, cask, box, or other package, or, if in bulk, 
in quantities less than 1 ton in weight or the entire quantity imported, 
whichever is smaller.



Sec. 144.34  Transfer to another warehouse.

    (a) At the same port. With the concurrence of the proprietors of the 
delivering and receiving warehouses, merchandise may be transferred from 
one bonded warehouse to another at the same port under Customs 
supervision and at the expense of the importer upon his written request 
to the port director, who shall issue an order for such transfer on 
Customs Form 6043. However, the port director may require the filing of 
a rewarehouse entry under Sec. 144.41 if he determines it necessary for 
proper control of the merchandise. All charges shall be paid before 
merchandise is transferred from a warehouse of class 1 (see Sec. 19.1 
of this chapter for classes of warehouses). The quantities of goods so 
transferred shall be subject to the joint determination of the warehouse 
proprietor and the cartman, lighterman, or private bonded carrier, as 
provided in Sec. 19.6 of this chapter.
    (b) At another port. Merchandise may be transferred to a warehouse 
which is under the jurisdiction of another port by withdrawing the 
merchandise for transportation in accordance with Sec. 144.36 and 
entering it for rewarehouse in accordance with Sec. 144.41 upon arrival 
at destination. All charges shall be paid before merchandise is 
transferred from the warehouse of class 1 (see Sec. 19.1 of this 
chapter for classes of warehouses).
    (c) Transfers between integrated bonded warehouses--(1) Eligibility. 
(i) Only an importer who will transfer warehoused merchandise among 
Class 2 and 9 warehouses listed on the application in paragraph (c)(2) 
of this section is eligible to participate.
    (ii) The importer must have a centralized inventory control system 
that shows the location of all of the warehoused merchandise at all 
times, including merchandise in transit.
    (iii) The importer and its surety must sign the application. If the 
application to use this alternative procedure is approved by the 
appropriate port director, the importer's entry bond containing the 
conditions provided under Sec. 113.62 of this chapter will continue to 
attach to any merchandise transferred under these alternative 
procedures.
    (iv) Each proprietor of a warehouse listed on the application and 
each surety who underwrites that proprietor's custodial bond coverage 
under Sec. 113.63 of this chapter shall sign the application.
    (2) Application. Application must be made in writing to the port 
director of the port in which the applicant's centralized inventory 
control system exists, with copies to all affected port directors, for 
exemptions from the requirements for transfer of merchandise from one 
bonded warehouse to another set forth in paragraphs (a) and (b) of this 
section. The application must list all bonded warehouses to and from 
which the merchandise may be transferred; all such warehouses must be 
covered by the same centralized inventory control system. Only blanket 
exemption requests will be considered; exemptions will not be considered 
for individual transfers. The application may be in letter form, signed 
by all participants, and contain a certification to the port director by 
the applicant that he maintains accounting records, documents and 
financial statements and reports that adequately support Customs 
activities.
    (3) Operation. An importer who receives approval to transfer 
merchandise between bonded warehouses in accordance with the provisions 
of this section may, after entry into the first warehouse, transfer that 
merchandise to any other warehouse without filing

[[Page 74]]

a withdrawal from warehouse or a rewarehouse entry. The warehoused 
merchandise will be treated as though it remains in the first warehouse 
so long as the actual location of the merchandise at all times is 
recorded as provided under the provisions of this section.
    (4) Inventory control requirements. The records required to be 
maintained must include a centralized inventory control system and 
supporting documentation which meets the following requirements:
    (i) Provide Customs upon demand with the proper on-hand balance of 
each inventory item in each warehouse facility and each storage location 
within each warehouse;
    (ii) Provide Customs upon demand with the proper on-hand balance for 
each open warehouse entry and the actual quantity in each warehouse 
facility;
    (iii) If an alternative inventory system has been approved, provide 
Customs upon demand with the proper on-hand balance for each unique 
identifier and the quantity related to each open warehouse entry and the 
quantity in each warehouse facility;
    (iv) Maintain documentation for all intracompany movements, 
including authorizations for the movement, shipping documents and 
receiving reports. These documents must show the appropriate warehouse 
entry number or unique identifier, the description and quantity of the 
merchandise transferred, and must be properly authorized and signed 
evidencing shipment from and delivery to each location;
    (v) Maintain a consolidated permit file folder at the location where 
the merchandise was originally warehoused. The consolidated permit file 
folder must meet the requirements of Sec. 19.12(d)(4) of this chapter 
regardless of the warehouse facility in which the action occurred. 
Documentation for all intracompany movements, including authorizations 
for movement, shipping documents, receiving reports, as well as 
documentation showing ultimate disposition of the merchandise must be 
filed in the consolidated permit file folder within seven business days;
    (vi) Maintain a subordinate permit file at all intracompany 
locations where merchandise is transferred containing copies of 
documentation required by Sec. 19.12(d)(4) of this chapter and by 
paragraph (c)(3)(v) of this section relating to merchandise quantities 
transferred to the location. A copy of all documents in the subordinate 
permit file folder must be filed in the consolidated permit file folder 
within seven business days; no exceptions will be granted to this 
requirement. When the final withdrawal is made on the respective entry, 
the subordinate permit file shall be considered closed and filed at the 
intracompany location to which the merchandise was transferred; and
    (vii) File the withdrawal from Customs custody at the original 
warehouse location at which the merchandise was entered.
    (5) Waiver of permit file folder requirements. The permit file 
folder requirements of paragraphs (c)(3)(v) and (c)(3)(vi) of this 
section may be waived if the proprietor's recordkeeping and inventory 
control system qualifies under the requirements of Sec. 
19.12(d)(4)(iii) of this chapter at all locations where bonded 
merchandise is stored.
    (6) Procedure not available--(i) Liens. The transfer procedures 
permitted under paragraph (c) of this section shall not be available for 
merchandise with respect to which Customs is notified of the existence 
of a lien, as prescribed in Sec. 141.112 of this chapter (see 19 U.S.C. 
1564), until proof shall be produced at the original warehouse location 
that the lien has been satisfied or discharged.
    (ii) Restricted merchandise. With the exception of alcohol and 
tobacco products, merchandise subject to a restriction on release such 
as covered by a licensing, quota or visa requirement, is not eligible.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 82-204, 47 
FR 49376, Nov. 1, 1982; T.D. 97-19, 62 FR 15840, Apr. 3, 1997]



Sec. 144.35  Withdrawal of vessel and aircraft supplies and equipment.

    Supplies and equipment for vessels and aircraft may be withdrawn 
from warehouse under the procedures set forth in this subpart and in 
Sec. Sec. 10.59 through 10.65 of this chapter.

[[Page 75]]



Sec. 144.36  Withdrawal for transportation.

    (a) Time limit. Merchandise may be withdrawn from warehouse for 
transportation to another port of entry if withdrawal for consumption or 
exportation can be accomplished at the port of destination before the 
expiration of the warehousing period.
    (b) Physical deposit in warehouse not needed. All or any part of the 
merchandise covered by a entry summary, Customs Form 7501 may be 
withdrawn for transportation without deposit in a bonded warehouse and 
may be permitted to remain on the vessel or other vehicle or on the pier 
in a constructive warehouse status pending examination. When any such 
merchandise not deposited in a warehouse is not forwarded under the 
withdrawal for transportation on account of damage or other cause, the 
importer shall be required to withdraw such merchandise immediately for 
consumption or exportation, or designate a warehouse to which it may be 
sent and, upon his failure to do so, it shall be treated as unclaimed.
    (c) Form. (1) A withdrawal for transportation shall be filed on 
Customs Form 7512 in five copies. An extra copy or copies of the Customs 
Form 7512 may be required for use in connection with the delivery of the 
merchandise to the bonded carrier and, in the case of alcoholic 
beverages, two extra copies shall be required for use in furnishing the 
duty statement to the port director at destination.
    (2) Separate withdrawals for transportation from a single warehouse, 
via a single conveyance, consigned to the same consignee, and deposited 
into a single warehouse, can be filed on one Customs Form 7512, under 
one control number, provided that there is an attachment, to be 
certified by a Customs officer, providing the information for each 
withdrawal, as required in paragraph (d) of this section. With the 
exception of alcohol and tobacco products, this procedure shall not be 
allowed for merchandise which is in any way restricted (for example, 
quota/visa).
    (3) The requirement that a Customs Form 7512 be filed and the 
information required in paragraph (d) of this section be shown shall not 
be required if the merchandise qualifies under the exemption in Sec. 
144.34(c).
    (d) Information required. In addition to the statement of quantity 
required by Sec. 144.32, Customs Form 7512 shall show the following 
information for the merchandise being withdrawn:
    (1) The original entry number, date of entry, date of entry summary, 
and port at which filed;
    (2) The name of the consignee at the port of destination;
    (3) Any ascertained weight, gauge, or measure;
    (4) The entered value of the merchandise;
    (5) Estimated duties, if any;
    (6) A statement that the merchandise is or is not admissible for 
consumption and the reason for non-admissibility, if applicable; and
    (7) The statistical information required by Sec. 141.61(e) of this 
chapter.

When the withdrawal is made after the merchandise has been rewarehoused, 
the rewarehouse entry number, date, and port at which filed also shall 
be shown.
    (e) Duty on samples withdrawn. The duty on any samples withdrawn at 
the original port from a shipment covered by a withdrawal for 
transportation shall be collected at such port and a notation thereof 
made on the withdrawal form. No separate invoice or extract from the 
original invoice shall be required to cover such samples.
    (f) Forwarding procedure. The merchandise shall be forwarded in 
accordance with the general provisions for transportation in bond 
(Sec. Sec. 18.1 through 18.8 of this chapter). However, when the 
alternate procedures under Sec. 144.34(c) are employed, the merchandise 
need not be delivered to a bonded carrier for transportation, and an 
entry for transportation (Customs Form 7512) and a rewarehouse entry 
will not be required.
    (g) Procedure at destination. Upon arrival at destination, the 
merchandise may be:
    (1) Entered for rewarehouse in accordance with Sec. 144.41;
    (2) Entered for combined rewarehouse and withdrawal for consumption 
in accordance with Sec. 144.42;
    (3) Exported in accordance with paragraph (h) of this section;

[[Page 76]]

    (4) Forwarded to another port or returned to the port of origin in 
accordance with Sec. 18.5 (c) or (d) of this chapter;
    (5) Admitted to a foreign trade zone in zone-restricted status as 
provided in part 146 of this chapter; or
    (6) Deposited into the proprietor's bonded warehouse or duty free 
store warehouse without rewarehouse entry as required in Sec. 144.41, 
if the merchandise qualifies for the exemption specified in Sec. 
144.34(c).
    (h) Exportation. A consignee of merchandise withdrawn for 
transportation who desires to export the merchandise upon arrival at 
destination shall so advise the port director at destination in writing. 
The port director shall then permit the exportation of the merchandise 
under Customs supervision in the same manner as a withdrawal for 
indirect exportation under Sec. 144.37.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46828, Aug. 9, 1979; T.D. 84-129, 49 FR 23168, June 5, 1984; T.D. 84-
212, 49 FR 39047, Oct. 3, 1984; T.D. 86-16, 51 FR 5064, Feb. 11, 1986; 
T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 97-19, 62 FR 15841, Apr. 
3, 1997]



Sec. 144.37  Withdrawal for exportation.

    (a) Form. A withdrawal for either direct or indirect exportation 
shall be filed on Customs Form 7512 (Transportation Entry and Manifest 
of Goods Subject to Customs Inspection and Permit) in 5 copies or on 
Customs Form 7501 in 3 copies for merchandise being exported under cover 
of a TIR carnet. Customs Form 7512 or Customs Form 7501 shall contain 
all of the statistical information as provided in Sec. 141.61(e) of 
this chapter. The port director may require an extra copy or copies of 
Customs Form 7512 or 7501 for use in connection with the delivery of 
merchandise to the carrier.
    (b) Procedure for indirect exportation--(1) Forwarding. Merchandise 
withdrawn for indirect exportation (transportation and exportation) 
shall be forwarded to the port of exportation in accordance with the 
general provisions for transportation in bond (Sec. Sec. 18.1--18.8 of 
this chapter).
    (2) Splitting of shipments. If any part of a shipment is not 
exported or if a shipment is divided at the port of exportation, 
extracts in duplicate from the manifest on file in the customhouse shall 
be made on Customs Form 7512 for each portion, one copy to be sent to 
the discharging inspector and the other to the lading inspector to be 
used as report of exportation. The splitting up for exportation of 
shipments arriving under warehouse withdrawals for indirect exportation 
shall be permitted only when various portions of a shipment are destined 
to different destinations, when the export vessel cannot properly 
accommodate the entire quantity, or in other similar circumstances. In 
the case of merchandise moving under cover of a TIR carnet, if the 
merchandise is not to be exported or if the shipment is to be divided, 
appropriate entry shall be required and the carnet discharged. The 
provisions of Sec. Sec. 18.23 and 18.24 of this chapter concerning 
change of destination or retention of merchandise on the dock shall also 
be followed in applicable cases.
    (3) Conversion to withdrawal for consumption. A withdrawal for 
indirect exportation may be converted to a withdrawal for consumption 
upon request to the director of the port where the withdrawal for 
indirect exportation was made.
    (c) Exportation by mail. Merchandise may be withdrawn from warehouse 
for exportation by mail in accordance with the provisions of subpart F 
of part 145 of this chapter.
    (d) Marks on packages. The exportation shall be made under the 
original marks of importation. Port marks may be added by authority of 
the port director under Customs supervision. The original and port marks 
shall appear in all Customs papers pertaining to the exportation.
    (e) Weight, gauge, or measure. Merchandise in bulk and packaged 
articles which are customarily bought and sold by weight, gauge, or 
measure may be withdrawn for exportation or transportation only at the 
actual quantities ascertained at the time of the original entry for 
warehouse, except as otherwise provided for by law. In any case, the 
port director may require a special report of weight, gauge, or measure 
of the merchandise being exported if he deems it necessary.

[[Page 77]]

    (f) Merchandise not laden. Merchandise withdrawn for exportation but 
not laden shall be sent to general order unless other disposition is 
prescribed by the port director.
    (g) Exportation at a foreign trade zone. Merchandise may be 
withdrawn for exportation at a foreign trade zone in the same or at a 
different port. The merchandise will be considered exported upon 
admission to a zone in zone-restricted status, as provided in Sec. 
146.44(c) of this chapter.
    (h) Class 9 warehouse withdrawals for exportation--(1) Applicability 
of sales ticket procedure. Merchandise in a Class 9 warehouse (duty-free 
store) may be withdrawn for any of the purposes set forth in this 
subpart. However, only conditionally duty-free merchandise in a Class 9 
warehouse intended for exportation or for delivery to persons and 
organizations set forth in subpart I, part 148, of this chapter, will be 
eligible for withdrawal under the sales ticket procedure specified in 
this paragraph.
    (2) Sales ticket content and handling. Sales ticket withdrawals 
shall be made only under a blanket permit to withdraw (see Sec. 19.6(d) 
of this chapter) and the sales ticket shall serve as the equivalent of 
the supplementary withdrawal. A sales ticket is an invoice of the 
proprietor's design which will include:
    (i) Serial number and date of preparation of each ticket;
    (ii) Warehouse entry number or specific identifier, if approved by 
the port director;
    (iii) Quantity of goods sold;
    (iv) Brief description of the articles including the size of 
bottles;
    (v) The full name and address of the purchaser. However, the port 
director may waive the address requirement for all merchandise except 
for alcoholic beverages in quantities in excess of 4 liters and 
cigarettes in quantities in excess of 3 cartons. Also, the address 
requirement is not applicable with respect to purchasers at airport 
duty-free enterprises; and
    (vi) A statement on the original copy (purchaser's copy) of the 
effect that goods purchased in a duty-free store will be subject to duty 
and/or tax with personal exemption if returned to the United States. At 
the time of purchase, the sales ticket, in triplicate, shall be made out 
in the name of the purchaser. One copy shall be retained by the 
proprietor. A permit file copy will be attached to the parcel containing 
the articles, and the original given to the purchaser. Additional copies 
may be retained by the proprietor.
    (3) Sales ticket register. In addition to the records required in 
Sec. 19.12(a) of this chapter, Class 9 warehouse proprietors shall 
maintain a sales ticket register or similar accounting record for each 
warehouse entry. The sales ticket register of the proprietor shall 
include the following information:
    (i) Warehouse entry number;
    (ii) Specific identifier, if applicable;
    (iii) Sales ticket date and number;
    (iv) Description;
    (v) Quantity; and
    (vi) Current balance.

As each warehouse entry is closed out, the warehouse proprietor shall 
verify the sales ticket register total with the amount withdrawn so as 
to account for all merchandise so withdrawn and certify on the register 
that all the goods have been exported or sold to qualifying persons and 
organizations under part 148 of this chapter. The sales ticket register 
shall be included in the permit file folder with or in lieu of the 
blanket permit summary, as provided in Sec. 19.6(d)(5) of this chapter. 
A copy of all sales tickets shall be retained by the proprietor for not 
less than 5 years after the date of the last sales ticket in the entry. 
In lieu of placing a copy of sales tickets in each permit file folder, 
the warehouse proprietor may keep all sales tickets in a readily 
retrievable manner in a separate file.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 73-312, 38 
FR 30883, Nov. 8, 1973; T.D. 80-142, 45 FR 36383, May 30, 1980; T.D. 84-
212, 49 FR 39047, Oct. 3, 1984; T.D. 86-16, 51 FR 5064, Feb. 11, 1986; 
T.D. 92-81, 57 FR 37701, Aug. 20, 1992; T.D. 95-81, 60 FR 52295, 52296, 
Oct. 6, 1995; T.D. 97-19, 62 FR 15842, Apr. 3, 1997; T.D. 99-64, 64 FR 
43266, Aug. 10, 1999; T.D. 00-22, 65 FR 16518, Mar. 29, 2000]



Sec. 144.38  Withdrawal for consumption.

    (a) Form. Withdrawals for consumption of merchandise in bonded 
warehouses shall be filed on Customs Form 7501, in triplicate, and shall 
contain all

[[Page 78]]

of the statistical information as provided in Sec. 141.61(e) of this 
chapter.
    (b) Withdrawal for exportation to Canada or Mexico. A withdrawal for 
exportation to Canada or Mexico or for entry into a duty-deferral 
program in Canada or Mexico is considered a withdrawal for consumption 
pursuant to Sec. 181.53 of this chapter.
    (c) Information to be shown on withdrawal. Each withdrawal shall 
show all information for which spaces are provided on the withdrawal 
form, and shall also show the separate value of each package and the 
total dutiable value of the merchandise being withdrawn. In the case of 
merchandise in packages which are uniform in kind, quantity, value, and 
duty, the number of each package to be withdrawn need not be shown on 
the withdrawal if the lowest and highest numbers in the number series of 
such packages are shown. In the case of merchandise subject to quota, or 
textiles and textile products subject to levels of restraint, the 
description shall reflect any correction thereof reported after the 
filing of the warehouse entry. Additionally, on each withdrawal of 
cigars, cigarettes, or cigarette papers or tubes subject to internal 
revenue tax, the statement for tax purposes required by Sec. 275.81 of 
the regulations of the Internal Revenue Service (26 CFR Sec. 275.81) 
shall be made on the withdrawal form.
    (d) Deposit of estimated duties. Estimated duties on the merchandise 
being withdrawn shall be deposited in accordance with subpart G of part 
141 of this chapter. The port director may increase or decrease the 
amount of estimated duties to be deposited on the final withdrawal to 
bring the aggregate amount of duties deposited into balance with the 
amount which he estimates will be finally due upon liquidation.
    (e) Permit for release of merchandise. When the duties and other 
charges have been paid, and all other requirements of law and 
regulations have been met, a permit on Customs Form 7501 shall be issued 
and delivered to the person making the warehouse withdrawal.
    (f) Textiles and textile products. Textiles and textile products 
subject to quota, visa or export license requirements in their condition 
at the time of importation may not be withdrawn from warehouse for 
consumption if during the warehouse period there has been a change by 
manipulation or other means:
    (1) In the country of origin of the merchandise as defined by Sec. 
12.130 of this chapter,
    (2) To exempt from quota or visa or export license requirements 
other than a change brought about by statute, treaty, executive order or 
Presidential proclamation, or
    (3) From one textile category to another textile category.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 73-312, 38 
FR 30883, Nov. 8, 1973; T.D. 74-114, 39 FR 12095, Apr. 3, 1974; T.D. 78-
329, 43 FR 43455, Sept. 26, 1978; T.D. 82-204, 47 FR 49376, Nov. 1, 
1982; T.D. 84-171, 49 FR 31253, Aug. 3, 1984; T.D. 85-38, 50 FR 8723, 
Mar. 5, 1985; T.D. 95-81, 60 FR 52296, Oct. 6, 1995; T.D. 96-14, 61 FR 
2911, Jan. 30, 1996]



Sec. 144.39  Permit to transfer and withdraw merchandise.

    With the exception of merchandise transferred under the procedures 
of Sec. 144.34(c), if all legal and regulatory requirements are met, 
the appropriate Customs officer shall approve the application to 
transfer or withdraw merchandise from a bonded warehouse by endorsing 
the permit copy and returning it to the applicant. The approved permit 
shall be presented by the withdrawer to the warehouse proprietor as 
evidence of Customs authorization of the transfer or withdrawal. The 
approved permit copy shall thereafter be retained in the warehouse entry 
file of the proprietor. Goods covered by permit may be retained in the 
bonded warehouse at the option of the proprietor.

[T.D. 82-204, 47 FR 49376, Nov. 1, 1982, as amended by T.D. 97-19, 62 FR 
15842, Apr. 3, 1997]



                      Subpart E_Rewarehouse Entries



Sec. 144.41  Entry for rewarehouse.

    (a) Applicability. When merchandise which has been withdrawn from 
warehouse for transportation to another port has arrived at the port of 
destination, it may be entered for rewarehouse by the consignee named in 
the withdrawal.

[[Page 79]]

    (b) Form of entry. An entry for rewarehouse shall be made in 
duplicate on Customs Form 7501 and shall contain all of the statistical 
information as provided in Sec. 141.61(e) of this chapter. The port 
director may require an extra copy or copies of Customs Form 7501, 
annotated ``PERMIT,'' for use in connection with the delivery of the 
merchandise to the warehouse. No declaration is required on the entry.
    (c) Combining separate shipments. (1) Separate shipments consigned 
to the same consignee and received under separate withdrawals for 
transportation may be combined into one rewarehouse entry if the 
warehouse withdrawals are from the same original warehouse entry.
    (2) Shipments covered by multiple warehouse entries, and shipped 
from a single warehouse under separate withdrawals for transportation, 
via a single conveyance, may be combined into one rewarehouse entry if 
consigned to the same consignee and deposited into a single warehouse. 
With the exception of alcohol and tobacco products, this procedure shall 
not be allowed for merchandise which is in any way restricted (for 
example, quota/visa). The combined rewarehouse entry shall have attached 
either copies of each warehouse entry package which is being combined 
into the single rewarehouse entry or a summary with pertinent 
information, that is, the date of importation, commodity description, 
size, HTSUS and entry numbers, for all entries withdrawn for 
consolidation as one rewarehouse entry. Any combining of separate 
withdrawals into one rewarehouse entry shall result in the rewarehouse 
entry being assigned the import date of the oldest entry being combined 
into the rewarehouse entry.
    (3) Combining of separate shipments shall be prohibited in all other 
circumstances.
    (d) Bond. A bond on Customs Form 301, containing the bond conditions 
set forth in Sec. 113.62 of this chapter shall be filed before a permit 
is issued on Customs Form 7501 for sending the merchandise to the bonded 
warehouse. However, no bond shall be required if the merchandise is 
entered by the consignee named in the original bond filed at the 
original port of entry, or if it is entered by a transferee who has 
established his right to withdraw the merchandise and has filed a bond 
in accordance with subpart C of this part.
    (e) Value and classification. The duties determined at the port 
where the original warehouse entry was filed shall be the duties 
chargeable under the rewarehouse entry, except in the cases provided for 
in Sec. Sec. 159.7 (a) and (b) of this chapter, which pertain to 
certain classes of merchandise excluded from the liquidation of the 
original warehouse entry and merchandise on which rates of duty or tax 
are changed by an act of Congress or by a proclamation by the President.
    (f) Examination. Any examination necessary for identification of the 
merchandise, determination of shortages, or other purposes shall be 
made.
    (g) Failure to enter. If the rewarehouse entry is not filed within 
15 calendar days after its arrival, the merchandise shall be disposed of 
in accordance with the applicable procedures in Sec. 4.37 or Sec. 
122.50 or Sec. 123.10 of this chapter. However, merchandise sent to a 
general order warehouse shall not be sold or otherwise disposed of as 
unclaimed until the expiration of the original 5-year period during 
which the merchandise may remain in warehouse under bond.
    (h) Protest. A protest may be filed at the port where the 
rewarehouse entry is made against a liquidation made at that port under 
Sec. 159.7 (a) or (b) of this chapter, or against a refusal of the 
director of that port to liquidate pursuant to said sections. In all 
other cases, any protest shall be filed against the original warehouse 
entry.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 82-204, 47 
FR 49376, Nov. 1, 1982; T.D. 84-129, 49 FR 23168, June 5, 1984; T.D. 84-
213, 49 FR 41185, Oct. 19, 1984; T.D. 97-19, 62 FR 15842, Apr. 3, 1997; 
T.D. 98-74, 64 FR 15303, Mar. 31, 1999]



Sec. 144.42  Combined entry for rewarehouse and withdrawal for consumption.

    (a) Applicability. If the consignee of merchandise withdrawn for 
transportation wishes to pay duty and obtain possession of the 
merchandise immediately upon arrival at destination, he

[[Page 80]]

may make a combined entry for re warehouse and withdrawal for 
consumption.
    (b) Procedure for entry. The procedures set forth in Sec. 144.41 
are applicable to this type of entry, with the following exceptions:
    (1) Form of entry. A combined entry for rewarehouse and withdrawal 
for consumption shall be made on Customs Form 7501 (Consumption Entry), 
in 4 copies, and shall contain all of the statistical information as 
provided in Sec. 141.61(e) of this chapter, one copy to be used as the 
permit. No declaration is required on the entry;
    (2) Extra copy for Internal Revenue. An additional copy of Customs 
Form 7501, marked or stamped ``For Internal Revenue Purposes,'' shall be 
presented for each entry of cigars, cigarettes, or cigarette papers or 
tubes, when the release from Customs custody of those articles is 
subject to part 275 of the regulations of the Internal Revenue Service 
(26 CFR part 275) and tax is payable to Customs; and
    (3) Deposit of duties. Estimated Customs duties, taxes, and other 
charges, as set forth in subpart G of part 141 of this chapter, shall be 
deposited upon presentation of the combined entry. The port director 
shall then issue a permit for release on Customs Form 7501.

[T.D. 73-175, 38 FR 17464, July 2, 1973, as amended by T.D. 73-312, 38 
FR 30884, Nov. 8, 1973; T.D. 87-75, 52 FR 20068, May 29, 1987]



PART 145_MAIL IMPORTATIONS--Table of Contents




Sec.
145.0 Scope.

                      Subpart A_General Provisions

145.1 Definitions.
145.2 Mail subject to Customs examination.
145.3 Opening of letter class mail; reading of correspondence 
          prohibited.
145.4 Dutiable merchandise without declaration or invoice, prohibited 
          merchandise, and merchandise imported contrary to law.
145.5 Undeliverable packages.

                  Subpart B_Requirements and Procedures

145.11 Declarations of value and invoices.
145.12 Entry of merchandise.
145.13 Internal revenue tax on mail entries.
145.14 Marking requirements.

             Subpart C_Administrative Review of Mail Entries

145.21 Administrative review.
145.22 Procedures for obtaining administrative review.
145.23 Time limits.
145.24 Amendment of entry.
145.25 Entry correct.
145.26 Rates of duty not binding.

                Subpart D_Special Classes of Merchandise

145.31 Importations not over $200 in value.
145.32 Bona-fide gifts.
145.34 Personal and household effects and tools of trade.
145.35 United States products returned.
145.36 Articles for institutions.
145.37 Articles for the U.S. Government.
145.38 Diplomatic pouches.
145.39 Articles for diplomatic officers, representatives or 
          international organizations, and foreign military personnel.
145.40 Plant material imported for immediate exportation.
145.41 Other conditionally and unconditionally free merchandise.
145.42 Proof for conditionally free merchandise.
145.43 Unaccompanied tourist shipments.

             Subpart E_Restricted and Prohibited Merchandise

145.51 Articles prohibited by section 305, Tariff Act of 1930.
145.52 Literature concerning devices for unlawful abortion.
145.53 Firearms and munitions of war.
145.54 Alcoholic beverages.
145.55 Trademarks, trade names, and copyrights.
145.56 Foreign Assets Control.
145.57 Regulations of other agencies.
145.58 Other restricted and prohibited merchandise.
145.59 Seizures.

                      Subpart F_Exportation by Mail

145.71 Exportation from continuous Government custody.
145.72 Delivery to Customs custody for exportation.

Policy Statement to Part 145--Examination of Sealed Letter Class Mail
Appendix to Part 145

    Authority: 19 U.S.C. 66, 1202 (General Note 23, Harmonized Tariff 
Schedule of the United States), 1624;
    Section 145.4 also issued under 18 U.S.C. 545, 19 U.S.C. 1618;
    Section 145.11 also issued under 19 U.S.C. 1481, 1485, 1498;

[[Page 81]]

    Section 145.12 also issued under 19 U.S.C. 1315, 1484, 1498;
    Sections 145.22 through 145.23 also issued under 19 U.S.C. 1501, 
1514;
    Section 145.31 also issued under 19 U.S.C. 1321;
    Section 145.32 also issued under 19 U.S.C. 1321, 1498;
    Sections 145.35 through 145.38, 145.41, also issued under 19 U.S.C. 
1498;
    Section 145.51 also issued under 19 U.S.C. 1305;
    Section 145.54 also issued under 19 U.S.C. 1618.

    Source: T.D. 73-135, 38 FR 13369, May 21, 1973, unless otherwise 
noted.



Sec. 145.0  Scope.

    The provisions of this part apply only to mail subject to Customs 
examination as set forth in Sec. 145.2. This part contains regulations 
pertaining specifically to the importation of merchandise through the 
mails but does not contain all the regulations applicable to mail 
importations. Importations by mail are subject to the same requirements 
and restrictions as importations by any other means, except where more 
specific procedures for mail importations are set forth in this part. 
The fee applicable to each item of dutiable mail for which Customs 
prepares documentation is set forth in Sec. 24.22 of this chapter.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978; T.D. 93-85, 58 FR 54286, Oct. 21, 1993]



                      Subpart A_General Provisions



Sec. 145.1  Definitions.

    (a) Mail article. ``Mail article'' means any posted parcel, packet, 
package, envelope, letter, aerogramme, box, card, or similar article or 
container, or any contents thereof, which is transmitted in mail subject 
to customs examination.
    (b) Letter class mail. ``Letter class mail'' means any mail article, 
including packages, post cards, and aerogrammes, mailed at the letter 
rate or equivalent class or category of postage.
    (c) Sealed letter class mail. ``Sealed letter class mail'' means 
letter class mail sealed against postal inspection by the sender.

[T.D. 78-102, 43 FR 14454, Apr. 6, 1978]



Sec. 145.2  Mail subject to Customs examination.

    (a) Restrictions. Customs examination of mail as provided in 
paragraph (b) of this section is subject to the restrictions and 
safeguards relating to the opening of letter class mail set forth in 
Sec. 145.3.
    (b) Generally. All mail arriving from outside the Customs territory 
of the United States which is to be delivered within the Customs 
territory of the United States and all mail arriving from outside the 
U.S. Virgin Islands which is to be delivered within the U.S. Virgin 
Islands, is subject to Customs examination, except:
    (1) Mail known or believed to contain only official documents 
addressed to officials of the U.S. Government;
    (2) Mail addressed to Ambassadors and Ministers (Chiefs of 
Diplomatic Missions) of foreign countries; and
    (3) Letter class mail known or believed to contain only 
correspondence or documents addressed to diplomatic missions, consular 
posts, or the officers thereof, or to international organizations 
designated by the President as public international organizations 
pursuant to the International Organizations Act (see Sec. 148.87(b) of 
this chapter). Mail, other than letter class mail, addressed to the 
designated international organizations is subject to Customs examination 
except where the organization certifies under its official seal that the 
mail contains no dutiable or prohibited articles. Any Customs 
examination made shall, upon request of the addressee international 
organization, take place in the presence of an appropriate 
representative of that organization.

[T.D. 78-102, 43 FR 14454, Apr. 6, 1978]



Sec. 145.3  Opening of letter class mail; reading of correspondence 
prohibited.

    (a) Matter in addition to correspondence. Except as provided in 
paragraph (e), Customs officers and employees may open and examine 
sealed letter class mail subject to Customs examination which appears to 
contain matter in addition to, or other than, correspondence, provided 
they have reasonable cause to suspect the presence of merchandise or 
contraband.

[[Page 82]]

    (b) Only correspondence. No Customs officer or employee shall open 
sealed letter class mail which appears to contain only correspondence 
unless prior to the opening:
    (1) A search warrant authorizing that action has been obtained from 
an appropriate judge of United States magistrate, or
    (2) The sender or the addressee has given written authorization for 
the opening.
    (c) Reading of correspondence. No Customs officer or employee shall 
read, or authorize or allow any other person to read, any correspondence 
contained in any letter class mail, whether or not sealed, unless prior 
to the reading:
    (1) A search warrant authorizing that action has been obtained from 
an appropriate judge or United States magistrate, or
    (2) The sender or the addressee has given written authorization for 
the reading.
    (d) Other types of correspondence. The provisions of paragraph (c) 
shall also apply to correspondence between school children and 
correspondence of the blind which are authorized to be mailed at other 
than the letter rate of postage in international mail.
    (e) Certain Virgin Islands mail. First class mail originating in the 
Customs territory of the United States and arriving in the U.S. Virgin 
Islands, which is to be delivered within the U.S. Virgin Islands, shall 
not be opened unless:
    (1) A search warrant authorizing that action has been obtained from 
an appropriate judge or United States magistrate, or
    (2) The sender or the addressee has been given written authorization 
for the opening.

[T.D. 78-102, 43 FR 14454, Apr. 6, 1978]



Sec. 145.4  Dutiable merchandise without declaration or invoice, prohibited 
merchandise, and merchandise imported contrary to law.

    (a) Subject to seizure and forfeiture. When, upon Customs 
examination, a mail article is found to contain merchandise subject to 
duty or tax, and the mail article is not accompanied by an appropriate 
Customs declaration and invoice or statement of value required by Sec. 
145.11, or is found to contain material prohibited importation or 
imported contrary to law, the merchandise is subject to seizure and 
forfeiture.
    (b) Mitigation of forfeiture. Any claimant incurring a forfeiture of 
merchandise for violation of this section may file a petition for relief 
pursuant to part 171 of this chapter. Mitigation of that forfeiture may 
occur consistent with mitigation guidelines.
    (c) Collection of mitigated forfeiture. When the shipment does not 
exceed $2,000 in value, Customs Form 3419 or 3419A or Customs Form 368 
or 368A (serially numbered) or Customs Form 7501 shall be used for the 
entry of the merchandise, and the duty, any tax, and the amount of the 
mitigated forfeiture shall be entered as separate items thereon. If a 
mail article for which a mail fine entry has been issued in accordance 
with this paragraph is undeliverable, it will be returned to the 
director of the port where the entry was issued, for disposition in 
accordance with Sec. 145.59 relating to articles subject to seizure.
    (d) Petition for relief. The addressee or sender may file a petition 
with the Fines, Penalties, and Forfeitures Officer having jurisdiction 
over the port where the mail fine entry was issued in accordance with 
part 171 of this chapter for relief from the forfeiture incurred and for 
release of the seized merchandise, or for additional relief from a 
mitigated forfeiture.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978; T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 
87-75, 52 FR 26142, July 13, 1987; T.D. 91-73, 56 FR 42527, Aug. 28, 
1991; T.D. 92-56, 57 FR 24944, June 12, 1992; T.D. 98-28, 63 FR 16417, 
Apr. 3, 1998; T.D. 99-27, 64 FR 13675, Mar. 22, 1999; T.D. 00-57, 65 FR 
53575, Sept. 5, 2000]



Sec. 145.5  Undeliverable packages.

    Mail articles which are refused or undeliverable, except mail 
articles for which a mail fine entry has been issued in accordance with 
Sec. 145.4(c), will be marked by the postmaster to show why delivery 
was not made, and will be forwarded to the proper exchange post office 
for return to the country of origin. Mail entries will be removed from 
the mail articles and returned to Customs for cancellation. If, for any 
reason, an undeliverable mail article known or

[[Page 83]]

supposed to be dutiable is not returned to the country of origin or 
forwarded to another country in accordance with the Postal regulations, 
it will be delivered to Customs for disposition under the Customs laws 
and regulations governing seized or unclaimed merchandise.



                  Subpart B_Requirements and Procedures



Sec. 145.11  Declarations of value and invoices.

    (a) Customs declaration. A clear and complete Customs declaration on 
the form provided by the foreign post office, giving a full and accurate 
description of the contents and value of the merchandise, shall be 
securely attached to at least one mail article of each shipment, 
including shipments of special classes of merchandise treated in subpart 
D of this part. Although a Customs declaration is required to be 
attached to only one mail article of each shipment, examination and 
release of the merchandise will be expedited if such a declaration is 
attached to each individual mail article.
    (b) Invoice or statement of commercial value. Each shipment of 
merchandise shall have an invoice or bill of sale (or, in the case of 
merchandise not purchased or consigned for sale, a statement of the fair 
retail value in the country of shipment), giving an accurate description 
and the purchase price of the merchandise, securely attached to the 
outside of the mail article or enclosed therein. If the shipment 
consists of more than one mail article, a copy of the invoice should 
accompany each mail article, or else the invoice shall accompany the 
mail article bearing the declaration, and that mail article shall be 
marked ``Invoice enclosed.''
    (c) [Reserved]
    (d) Shipments without declaration and invoice. Shipment of 
merchandise which are not accompanied by a Customs declaration and 
invoice in accordance with paragraphs (a) through (b) of this section 
may be subject to seizure and forfeiture in accordance with Sec. 145.4.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 76-103, 41 
FR 14731, Apr. 7, 1976; T.D. 78-102, 43 FR 14454, Apr. 6, 1978; T.D. 85-
39, 50 FR 9612, Mar. 11, 1985]



Sec. 145.12  Entry of merchandise.

    (a) Formal entries--(1) Discretionary. The port director may require 
formal entry of any mail shipment regardless of value if in his opinion 
it is necessary to protect the revenue.
    (2) Required. Formal entry at the customhouse shall be required for 
every importation in the mails which exceeds $2,000 in value, except for 
special classes of merchandise which can be released without entry (see 
subpart D of this part), and except as provided in subparts B and C of 
part 143 and Sec. 10.1 of this chapter.
    (3) Separate shipments. Separate shipments not exceeding $2,000 in 
value, if mailed abroad at different times (as shown by the declaration 
or other mailing indicia), shall not be combined for the purpose of 
requiring formal entry, even though they reach Customs at the same time 
and are covered by a single order or contract in excess of $2,000, 
unless there was a splitting of shipments in order to avoid the payment 
of Customs duty.
    (4) Notice of formal entry requirement. When a formal entry is 
required, the addressee shall be notified of the arrival of the shipment 
and of the place at which entry is to be made. If the shipment is 
addressed to a point which is not a Customs port or station, the port of 
entry specified in the notice shall be the port nearest the destination 
of the shipment. When a formal entry is filed, it shall contain all the 
statistical information as provided in Sec. 141.61(e) of this chapter.
    (b) Mail and informal entries--(1) Preparation of entry form. Except 
as provided in paragraphs (c) and (e) of this section, Customs officers 
shall prepare and attach a mail entry (Customs Form 3419 or 3419A) for 
each shipment not exceeding $2,000 in value which is to be delivered by 
the Postal Service, and return the shipment to the Postal Service for 
delivery and collection of duty. If the addressee has arranged to

[[Page 84]]

pick up such a shipment at the Customs office where it is being 
processed, the Customs officer shall prepare an informal entry (Customs 
Form 368 or 368A (serially numbered), or an entry summary, Customs Form 
7501, and collect the duty in accordance with subpart C of part 143 of 
this chapter.
    (2) Rates of duty. Merchandise released under a mail or informal 
entry shall be dutiable at the rates of duty in effect when the 
preparation of the entry is completed by a Customs employee, ready for 
transmittal with the merchandise to the addressee.
    (c) Dutiable shipments not over $2,000 for Government agencies. When 
a dutiable shipment not exceeding $2,000 in value is addressed to a U.S. 
Government department or agency, the port director may release the 
merchandise prior to the payment of duties under an entry on Customs 
Form 368 or 368A (serially numbered) or Customs Form 7501, upon the 
receipt of a stipulation in the form set forth in Sec. 141.102(d) of 
this chapter. If the stipulation does not accompany the shipment, the 
port director shall notify the Government department or agency of the 
arrival of the shipment and request the stipulation. Upon receipt of the 
completed stipulation and preparation of the entry form, the port 
director shall stamp all mail articles in the shipment to show that they 
have received Customs treatment and shall return the shipment to the 
Postal Service for delivery, unless the addressee has arranged to pick 
up the shipment at the Customs office where it is being processed. The 
proper Government department or agency shall be billed later for any 
duties and taxes due.
    (d) Release without entry. Certain types of merchandise may be 
passed free of duty without issuing an entry (see subpart D of this 
part).
    (e) Unaccompanied shipments--(1) Mail entry to be attached. If the 
requirements of Sec. 148.115(a) of this chapter are met, Customs 
officers shall prepare and attach a mail entry, Customs Form 3419 or 
3419A, for each shipment for which entry is claimed under subheading 
9816.00.40, Harmonized Tariff Schedule of the United States (19 U.S.C. 
1202), which is to be delivered by the Postal Service, and return the 
shipment to the Postal Service for delivery and collection of duty. If 
the addressee has arranged to pick up the shipment at the Customs office 
where it is being processed, the Customs officer shall prepare an 
informal entry, Customs Form 368 or 368A (serially numbered), or entry 
summary, Customs Form 7501, and collect the duty in accordance with 
subpart C of part 143 of this chapter if the requirements of Sec. 
148.115(a) of this chapter are met.
    (2) Disposition of Customs Form 255. The Declaration of 
Unaccompanied Articles, Customs Form 255, affixed to the shipment shall 
be removed by the Customs officer and retained for Customs purposes. If 
a mail entry, Customs Form 3419 or 3419A, has been prepared, the mail 
entry number shall be noted on the Customs Form 255.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 73-175, 38 
FR 17469, July 2, 1973; T.D. 73-312, 38 FR 30884, Nov. 8, 1973; T.D. 78-
102, 43 FR 14454, Apr. 6, 1978; T.D. 78-394, 43 FR 49788, Oct. 25, 1978; 
T.D. 85-123, 50 FR 29955, July 23, 1985; T.D. 87-75, 52 FR 26142, July 
13, 1987; T.D. 89-1, 53 FR 51263, Dec. 21, 1988; T.D. 89-82, 54 FR 
36026, Aug. 31, 1989; T.D. 91-73, 56 FR 42527, Aug. 28, 1991; T.D. 92-
56, 57 FR 24944, June 12, 1992; T.D. 98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 145.13  Internal revenue tax on mail entries.

    (a) Method of collection. Any internal revenue tax assessed on a 
mail entry shall be shown as a separate item on the entry, and collected 
in the same manner as Customs duties.
    (b) Release without payment of tax. A mail entry may not be used to 
release a shipment of cigars, cigarettes, or cigarette papers or tubes 
for a manufacturer without payment of tax as provided for in 27 CFR part 
275 and Sec. 11.2a of this chapter. If a claim for release without 
payment of tax is made by the addressee at the time of delivery, the 
shipment will be returned by the Postal Service to the port of entry or 
sent to the nearest Customs office at which appropriate release as 
claimed may be arranged by the addressee.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978]

[[Page 85]]



Sec. 145.14  Marking requirements.

    (a) Country of origin. Merchandise imported by mail shall be marked 
with the country of origin in accordance with part 134 of this chapter. 
If merchandise without the required marking is to be delivered from the 
post office where it has been given Customs examination, the Customs 
officer shall require compliance with the marking law and regulations. 
If it is to be delivered from another post office, the Customs officer 
shall place in the envelope containing the mail entry a copy of Customs 
Form 3475, containing instructions to the postmaster concerning the 
marking to be required before delivery.
    (b) Other marking requirements. Certain types of merchandise are 
subject to special marking requirements, such as those contained in the 
Textile Fiber Products Identification Act, the Wool Products Labeling 
Act, and the Trademark Act. Since there is no provision for post office 
supervision of these types of marking, the port director shall require 
compliance with the law and regulations (see parts 11 and 133 of this 
chapter).
    (c) Failure to mark. If the addressee fails to comply with the 
marking requirements, the mail article will be treated as undeliverable 
in accordance with Sec. 145.5.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978]



             Subpart C_Administrative Review of Mail Entries



Sec. 145.21  Administrative review.

    Requests for adjustment of the amount of duty assessed under mail 
entries shall be handled as requests for administrative review in 
accordance with this subpart.



Sec. 145.22  Procedures for obtaining administrative review.

    If an addressee is dissatisfied with the amount of duty assessed 
under a mail entry, he may obtain administrative review in the following 
ways:
    (a) He may pay the assessed duty, take delivery of the merchandise, 
and send a copy of the mail entry to the issuing Customs office 
indicated on the mail entry, together with a statement of the reason it 
is believed the duty assessed is incorrect. Any invoices, bills of sale, 
or other evidence should be submitted with the statement. The addressee 
may show the mail entry number and date on his statement instead of 
sending a copy of the mail entry, but this may result in delay.
    (b) He may postpone acceptance of the shipment, and within the time 
allowed by the Postal regulations provide the postmaster with a written 
statement of his objections. The postmaster will forward the mail entry 
together with the addressee's statement and any invoices, bills of sale, 
or other evidence submitted by the addressee to the port director who 
issued the entry, and retain custody of the shipment until advice is 
received from the port director as to the disposition to be made. If the 
addressee is located near one of the ports at which Customs officers are 
authorized to review mail entries (see 39 CFR 10.5), the postmaster may 
send the mail entry to that port, together with the addressee's 
statement and evidence, for reconsideration by the port director.
    (c) He may pay the assessed duty and take delivery of the 
merchandise, and file a protest under section 514, Tariff Act of 1930, 
as amended (19 U.S.C. 1514), in the form and manner prescribed in part 
174 of this chapter.

[T.D. 73-175, 38 FR 13369, May 21, 1973, as amended by T.D. 78-99, 43 FR 
13061, Mar. 29, 1978]



Sec. 145.23  Time limits.

    A mail entry may be amended under section 520(c), Tariff Act of 
1930, as amended (19 U.S.C. 1520(c)), only if the addressee requests 
such amendment within the time limits prescribed therein (see Sec. Sec. 
173.4 and 173.5 of this chapter), and the claim is allowable under 
section 520(c). Requests for adjustment in the amount of duty assessed 
under mail entries made under Sec. 145.22(a) shall be made in such time 
that the request can be acted upon by the port director within 90 days 
after receipt of the mail article and payment of the duties by the 
addressee. Protests under Sec. 145.22(c) must be filed not later than 
90 days after payment of the duties by the addressee, but may be acted

[[Page 86]]

upon after the expiration of that 90-day period.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978]



Sec. 145.24  Amendment of entry.

    If the port director is satisfied that the objection is valid and 
timely, he shall amend the mail entry. If the duty has already been 
paid, Customs shall issue an appropriate refund of duty.



Sec. 145.25  Entry correct.

    If the port director believes the duty originally assessed was 
correct, he shall send the addressee a notice in writing that the 
request for refund of duty has been denied. If the duty has not been 
paid, the mail entry shall be returned to the postmaster concerned, 
together with a copy of the notice sent to the addressee. The postmaster 
will then collect the duty and deliver the shipment, or, if the 
addressee refuses to pay the duty, will treat the shipment as 
undeliverable.



Sec. 145.26  Rates of duty not binding.

    Rates of duty assessed on a mail entry, whether assessed on the 
original entry or as amendments under Sec. 145.24, are not binding for 
future importations. A binding ruling on tariff classification may be 
obtained in accordance with the procedures set forth in part 177 of this 
chapter.

[T.D. 73-175, 38 FR 13369, May 21, 1973, as amended by T.D. 73-175, 38 
FR 17469, July 2, 1973; T.D. 78-99, 43 FR 13061, Mar. 29, 1978]



                Subpart D_Special Classes of Merchandise



Sec. 145.31  Importations not over $200 in value.

    The port director shall pass free of duty and tax, without preparing 
an entry as provided for in Sec. 145.12, packages containing 
merchandise having an aggregate fair retail value in the country of 
shipment of not over $200, subject to the requirements set forth in 
Sec. Sec. 10.151 and 10.153 of this chapter.

[T.D. 94-51, 59 FR 30296, June 13, 1994]



Sec. 145.32  Bona-fide gifts.

    The port director shall pass free of duty and tax, without preparing 
an entry as provided for in Sec. 145.12, articles sent as bona-fide 
gifts from persons in foreign countries to persons in the United States 
having an aggregate fair retail value in the country of shipment not 
exceeding $100 ($200, in the case of articles sent from persons in the 
Virgin Islands, Guam, and American Samoa), subject to the requirements 
set forth in Sec. Sec. 10.152 and 10.153 of this chapter.

[T.D. 94-51, 59 FR 30296, June 13, 1994]



Sec. 145.34  Personal and household effects and tools of trade.

    (a) U.S. military and civilian personnel returning from extended 
duty abroad. Section 148.74 of this chapter sets forth specific 
requirements for exemptions from duty under subheading 9805.00.50, 
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), for 
personal and household effects of military and civilian personnel of the 
United States returning upon the completion of extended duty abroad. A 
copy of the official travel orders shall be attached to or enclosed in 
each mail article and the outside of each mail article shall be clearly 
marked to show that exemption from duty is being claimed.
    (b) Other personal and household effects, and tools of trade. 
Certain personal and household effects and tools of trade may be passed 
free of duty without issuing an entry, in accordance with Sec. 148.53 
of this chapter.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978; T.D. 89-1, 53 FR 51263, Dec. 21, 1988]



Sec. 145.35  United States products returned.

    Products of the United States returned after having been exported, 
which have not been advanced in value or improved in condition while 
abroad, may be passed free of duty without issuing an entry and without 
the declarations provided for in Sec. 10.1(a) of this chapter, provided 
the shipment is valued at not over $2,000 and the port director is 
satisfied that the merchandise is free of duty under subheading

[[Page 87]]

9801.00.10, Harmonized Tariff Schedule of the United States (19 U.S.C. 
1202).

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 85-123, 50 
FR 29955, July 23, 1985; T.D. 89-1, 53 FR 51263, Dec. 21, 1988; T.D. 89-
82, 54 FR 36026, Aug. 31, 1989; T.D. 94-47, 59 FR 25570, May 17, 1994; 
T.D. 98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 145.36  Articles for institutions.

    Books and other articles classifiable under subheading 4903.00.00, 
4904.00.00, 4905.91.00, 4905.99.00, 9701.10.00, 9701.90.00, 9810.00.05, 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 
1202), imported by and addressed directly to a library or other 
institution described in subheading 9810.00.05 or 9101.30, HTSUS may be 
passed free of duty without issuing an entry, if the port director is 
satisfied that the merchandise is entitled to free entry. A declaration 
may be required in accordance with Sec. 10.43 of this chapter under the 
procedure specified in Sec. 145.42.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 85-123, 50 
FR 29955, July 23, 1985; T.D. 89-1, 53 FR 51263, Dec. 21, 1988]



Sec. 145.37  Articles for the U.S. Government.

    (a) Mail articles for copyright. Mail articles marked for copyright 
which are addressed to the Library of Congress, to the U.S. Copyright 
Office, or to the office of the Register of Copyrights, Washington, DC, 
shall be passed free of duty without issuing an entry.
    (b) Books, engravings, and other articles. Books, classifiable under 
subheading 4903.00.00, Harmonized Tariff Schedule of the United States 
(HTSUS) (19 U.S.C. 1202), and engravings, etchings, and other articles 
enumerated in subheading 9808.00.10, HTSUS, shall be passed free of duty 
without issuing an entry when they are addressed to the Library of 
Congress or any department or agency of the U.S. Government.
    (c) Official Government documents. Other mail articles addressed to 
offices or officials of the U.S. Government, believed to contain only 
official documents, shall be passed free of duty without issuing an 
entry. Such mail articles, when believed to contain merchandise, shall 
be treated in the same manner as other mail articles of merchandise so 
addressed.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978; T.D. 89-1, 53 FR 51263, Dec. 21, 1988; T.D. 91-
77, 56 FR 46115, Sept. 10, 1991]



Sec. 145.38  Diplomatic pouches.

    Mail articles bearing the official seal of a foreign government with 
which the United States has diplomatic relations, accompanied by 
certificates bearing such seal to the effect that they contain only 
official communications or documents, shall be admitted free of duty 
without Customs examination.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14454, Apr. 6, 1978]



Sec. 145.39  Articles for diplomatic officers, representatives of 
international organizations, and foreign military personnel.

    Free entry of articles in mail articles addressed to diplomatic 
officers, representatives of certain international organizations, and 
similar persons is governed by subpart I of part 148 of this chapter.

[T.D. 73-175, 38 FR 13369, May 21, 1973, as amended by T.D. 73-227, 38 
FR 22548, Aug. 22, 1973; T.D. 78-102, 43 FR 14454, Apr. 6, 1978]



Sec. 145.40  Plant material imported for immediate exportation.

    Plant material may be imported by mail free of duty for immediate 
exportation by mail subject to the following regulations, which have 
been approved by the Department of Agriculture and the Postal Service. 
This procedure shall not affect the movement of plant material in the 
internal mails through the United States:
    (a) Permit for entry. Each shipment shall be dispatched in the mails 
from abroad, accompanied by a yellow and green special mail tag bearing 
the serial number of the permit for entry for immediate exportation or 
immediate transportation and exportation, issued by the U.S. Department 
of Agriculture, and also by the postal form of Customs declaration.
    (b) Place of inspection. Upon arrival, the shipment shall be 
detained by or redispatched to the postmaster at

[[Page 88]]

Washington, DC, Brownsville, Tex., Hoboken, NJ, Honolulu, Hawaii, 
Laredo, Tex., Miami, Fla., San Francisco, Calif., San Juan, P.R., San 
Pedro, Calif., or Seattle, Wash., as may be appropriate, according to 
the address on the green and yellow tag, and there submitted to the 
Customs officer and the Federal quarantine inspector. The merchandise 
shall be accorded special handling only at these cities, and under no 
circumstances shall it be permitted to enter the commerce of the United 
States.
    (c) Special handling. After inspection by the Customs and quarantine 
officers, and with their approval, the addressee or his authorized agent 
shall repack and readdress the mail package under Customs supervision; 
endorse and sign on the package a waiver of the addressee's right to 
withdraw the mail article from the mails; affix to the mail article the 
necessary postage; and comply with any other mailing and export 
requirements, after which the package shall be delivered under Customs 
supervision to the postmaster for exportation by mail in accordance with 
Sec. 145.71.
    (d) Entry not required. It will not be necessary to issue a Customs 
mail entry nor to require a formal entry of the shipment.

[T.D. 73-175, 38 FR 13369, May 21, 1973, as amended by T.D. 78-102, 43 
FR 14455, Apr. 6, 1978]



Sec. 145.41  Other conditionally and unconditionally free merchandise.

    Shipments of conditionally or unconditionally free merchandise not 
specifically treated elsewhere in this part may be passed free of duty 
and tax without issuing an entry, if the value is not over $2,000 and 
the port director is satisfied that the merchandise is entitled to free 
entry.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 85-123, 50 
FR 29955, July 23, 1985; T.D. 89-82, 54 FR 36026, Aug. 31, 1989; T.D. 
98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 145.42  Proof for conditionally free merchandise.

    The port director may, at his discretion, require appropriate proof 
of duty-free status before releasing conditionally free merchandise. 
This proof may be obtained by either of the following methods:
    (a) Retain shipment and request proof. The shipment may be retained 
by the port director while the necessary proof is requested from the 
addressee. If the requested proof is not received within 30 days, a mail 
entry shall be issued at the ordinary rate of duty which would apply if 
the merchandise were not conditionally free, and the mail entry shall be 
forwarded with the shipment for collection of duties.
    (b) Send shipment with form and entry. If the only proof required 
for free entry is a declaration signed by the addressee, the port 
director may issue a mail entry at the ordinary duty which would apply 
if the merchandise were not conditionally free. The shipment shall then 
be forwarded together with the mail entry, a copy of the appropriate 
declaration form, and instructions to the postmaster to deliver the 
shipment free of duty if the importer executes the declaration, and to 
collect the full duty shown on the mail entry if the importer does not 
execute the declaration.



Sec. 145.43  Unaccompanied tourist shipments

    Unaccompanied tourist shipments for which entry is claimed under 
subheading 9804.00.70, Harmonized Tariff Schedule of the United States 
(19 U.S.C. 1202), may be passed free of duty and tax if the requirements 
of Sec. 148.115(a) of this chapter are met. The Declaration of 
Unaccompanied Articles, Customs Form 255, shall be removed by the 
Customs officer from the shipment and retained for Customs purposes.

[T.D. 78-394, 43 FR 49788, Oct. 25, 1978, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988]



             Subpart E_Restricted and Prohibited Merchandise



Sec. 145.51  Articles prohibited by section 305, Tariff Act of 1930.

    (a) Types of articles. Various articles, as described in section 
305, Tariff Act of 1930, as amended (19 U.S.C. 1305), and in part 12 of 
this chapter, are prohibited from importation. This prohibition includes 
the following types of articles:

[[Page 89]]

    (1) Obscene matter;
    (2) Articles for causing unlawful abortion (see Sec. 145.52 for the 
treatment of literature pertaining to such articles);
    (3) Matter advocating treason or insurrection against the United 
States or forcible resistance to any law of the United States;
    (4) Matter containing any threat to take the life of or inflict 
bodily harm upon any person in the United States; and
    (5) Lottery matter, except any lottery ticket, printed paper that 
may be used as a lottery ticket, or advertisement of any lottery, that 
is printed in Canada for use in connection with a lottery conducted in 
the United States.
    (b) Disposition of articles. Mail found to contain lottery matter 
shall be disposed of by the Postal Service under the postal laws and 
regulations. Mail found to contain any of the other prohibited articles 
described in paragraphs (a)(1) through (a)(4) of this section shall be 
given appropriate treatment by Customs under the Customs laws and 
regulations (see Sec. 12.40 of this chapter).

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 92-80, 57 FR 
37702, Aug. 20, 1992]



Sec. 145.52  Literature concerning devices for unlawful abortion.

    Mail articles containing literature or advertisements concerning 
devices to produce unlawful abortions, are prohibited from the mails by 
18 U.S.C. 1461, and shall be retained by, or delivered to, the Postal 
Service for disposition under the postal laws and regulations. If the 
Postal Service determines in any case that it is proper to release the 
material to the addressee, it shall be submitted for Customs treatment 
before delivery.

[T.D. 78-99, 43 FR 13061, Mar. 29, 1978, as amended by T.D. 78-102, 43 
FR 14455, Apr. 6, 1978]



Sec. 145.53  Firearms and munitions of war.

    Importations of firearms, munitions of war, and related articles are 
subject to the import permit requirements and other restrictions set 
forth in 27 CFR parts 47, 178, 179.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978]



Sec. 145.54  Alcoholic beverages.

    (a) Nonmailable. Alcoholic beverages are nonmailable, with certain 
exceptions (see 18 U.S.C. 1716 and the postal regulations), and when 
imported in the mails are subject to seizure and forfeiture under 18 
U.S.C. 545.
    (b) Seizure. When alcoholic beverages are received in the mails, 
they shall be seized, and the addressee shall be advised that they are 
subject to forfeiture and that he has a right to file a petition for 
their release (see part 171 of this chapter).
    (c) Conditions for release. If the port director is satisfied that 
there was no fraudulent intent involved, he may release the alcoholic 
beverages to the addressee upon the following conditions:
    (1) Applicable duty and internal revenue tax shall be paid.
    (2) The addressee shall comply with the alcoholic beverage laws of 
the State to which the shipment is destined.
    (3) Any other conditions the port director may impose under his 
authority to remit or mitigate fines, penalties, and forfeitures shall 
be complied with.
    (4) The addressee, his representative, or a common carrier shall 
pick up the merchandise at the Customs office where it is being held. 
Since the merchandise is nonmailable, it cannot be delivered by the 
Postal Service.



Sec. 145.55  Trademarks, trade names, and copyrights.

    Merchandise bearing a trademark or trade name entitled to protection 
against imports, merchandise bearing a mark or name that copies or 
simulates such a trademark or trade name, and merchandise which is in 
violation of copyright law is subject to the restrictions and 
prohibitions set forth in part 133 of this chapter.



Sec. 145.56  Foreign Assets Control.

    Merchandise subject to regulations of the Office of Foreign Assets 
Control of the Treasury Department prohibiting

[[Page 90]]

or restricting entry of unlicensed importations of articles directly or 
indirectly from certain designated countries shall be detained until 
licensed or the question of its release, seizure, or other disposition 
has been determined under the Foreign Assets Control or Cuban Assets 
Control regulations (31 CFR parts 500 and 515) (See also 19 CFR 12.150).

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 96-42, 61 FR 
24889, May 17, 1996]



Sec. 145.57  Regulations of other agencies.

    Certain types of plants and plant products, food, drugs, cosmetics, 
hazardous or caustic and corrosive substances, viruses, serums, and 
various harmful articles are subject to examination and clearance by 
appropriate agencies before release to the addressee (see part 12 of 
this chapter).



Sec. 145.58  Other restricted and prohibited merchandise.

    Other restrictions and prohibitions pertaining to certain types of 
imported merchandise are set forth in part 12 of this chapter and are 
applicable to importations by mail.



Sec. 145.59  Seizures.

    (a) Articles prohibited and contrary to law. All mail shipments 
containing articles the importation of which is prohibited, or articles 
imported into the United States in any manner contrary to law, shall be 
seized or detained as appropriate and held by Customs officers for 
appropriate treatment, except for certain articles which will be handled 
by the Postal Service as specified in Sec. Sec. 145.51 and 145.52.
    (b) Notification of seizure or detention. In all cases where 
articles are seized or detained by Customs officers, the addressee shall 
be notified of the seizure or detention, of the reason for such action, 
and, if appropriate, of his right to petition for relief (see part 171 
of this chapter).



                      Subpart F_Exportation by Mail



Sec. 145.71  Exportation from continuous Government custody.

    (a) Relief from duties. Merchandise imported into the United States, 
unless nonmailable, may be exported by any class of mail without the 
payment of duties, if:
    (1) The merchandise has remained continuously in the custody of the 
Government (Customs or postal authorities); and
    (2) The mail articles containing such merchandise are inspected and 
mailed under Customs supervision.
    (b) Waiver of right to withdraw. Waiver of the right to withdraw the 
mail article from the mails shall be endorsed on each mail article to be 
so exported and signed by the exporter.
    (c) Export entry or withdrawal required. An export entry in 
accordance with Sec. 18.25 of this chapter or a warehouse withdrawal 
for exportation in accordance with Sec. 144.37 of this chapter, 
whichever is appropriate, shall be filed for merchandise being exported 
under this section, except for merchandise imported by mail which is 
either:
    (1) Unclaimed or refused and being returned by the Postal Service to 
the country of origin as undeliverable mail; or
    (2) For which a formal entry has not been filed and which is being 
remailed from continuous Customs or postal custody to Canada.

[T.D. 73-175, 38 FR 13369, May 21, 1973, as amended by T.D. 73-175, 38 
FR 17470, July 2, 1973; T.D. 78-102, 43 FR 14455, Apr. 6, 1978]



Sec. 145.72  Delivery to Customs custody for exportation.

    In certain cases where merchandise has not been in continuous 
Government custody, delivery to Customs custody is appropriate before 
exportation by mail, as set forth in the following sections of this 
chapter:
    (a) Section 10.8 (articles exported for repairs or alterations).
    (b) Section 10.9 (articles exported for processing).
    (c) Section 148.33 (merchandise which was imported free of duty 
under a personal exemption, found to be unsatisfactory, and is being 
exported for replacement).
    (d) Section 10.38 (exportation of imported merchandise which was 
entered temporarily under bond).

[[Page 91]]

    (e) Section 191.42 (exportation of rejected imported merchandise, 
with drawback of duties).

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 98-16, 63 FR 
11005, Mar. 5, 1998]

  Policy Statement to Part 145--Examination of Sealed Letter Class Mail

    A. Customs officers and employees shall not open first class mail 
arriving in the U.S. Virgin Islands for delivery there, if it originated 
in the Customs territory of the United States, unless a search warrant 
or written authorization of the sender or addressee is obtained. Customs 
officers or employees may open and examine all other sealed letter class 
mail which is subject to the Customs mail regulations (see 19 CFR part 
145) and which appears to contain matter in addition to, or other than, 
correspondence, provided they have ``reasonable cause to suspect'' the 
presence of merchandise or contraband.
    B. Customs officers and employees shall not open any sealed letter 
class mail which appears to contain only correspondence unless a search 
warrant or written authorization of the sender or addressee is obtained 
in advance of the opening.
    C. Customs officers and employees are prohibited from reading, or 
authorizing or allowing others to read, any correspondence contained in 
any letter class mail unless there has been obtained in advance either a 
search warrant or written authorization of the sender or addressee. This 
prohibition, which will continue to be strictly enforced, also applies 
to correspondence between school children and correspondence of the 
blind which are authorized to be mailed at other than the letter rate of 
postage in international mail.
    D. If a violation of law is discovered upon opening any mail article 
referred to in paragraph C, and it is believed that the correspondence 
may provide additional information concerning the violation and is 
therefore needed for further investigation or use in court, a search 
warrant shall be obtained before any correspondence is seized, read, or 
referred to another agency. Search warrants shall be promptly sought. 
Correspondence may be detained while a search warrant is being sought.
    E. If no controlled delivery is arranged and correspondence is not 
to be otherwise seized pursuant to a search warrant (see ``F'' below), 
the item which constitutes the violation shall be removed and any 
correspondence shall be replaced in the wrapper, or in a new wrapper if 
the original wrapper has been seized pursuant to 19 U.S.C. 1595a. The 
wrapper shall then be resealed, marked to indicate it was opened by 
Customs, and returned to postal channels. Appropriate seizure notices 
shall be sent in accordance with 19 CFR 145.59(b).
    F. No mail article may be referred to another agency without a 
search warrant unless--
    (1) Any correspondence has been removed and the mail article is 
being referred for examination and clearance under 19 CFR 145.57,
    (2) Any correspondence has been removed and the mail article has 
been lawfully seized by Customs,
    (3) The mail article is being referred to Postal Service channels to 
effect a controlled delivery in cooperation with other law enforcement 
agencies, or
    (4) The mail article is being returned to Postal Service channels 
for normal processing.
    G. Whenever sealed letter class mail is opened, the factors giving 
the Customs officer or employee ``reasonable cause to suspect'' the 
presence of merchandise or contraband shall be recorded on the 
appropriate form and on the opened envelope or other container by means 
of appropriate coded symbols. Should a seizure result, these factors 
shall also be recorded on the seizure report.
    H. Sealed letter class mail with the green Customs label on a 
Customs declaration may be opened without additional cause. 
Correspondence in such mail is subject to the restrictions regarding the 
detention, reading, and referral of mail to other agencies found in 
paragraphs C through F.
    I. Whenever any sealed letter class mail is opened for any of the 
reasons set forth in the above paragraphs, a Postal Service 
employeeshall be present and shall observe the opening.
    J. Any violation of the Customs mail regulations or any of these 
policies will lead to appropriate administrative sanctions, as well as 
possible criminal prosecution pursuant to 18 U.S.C. 1702.

[T.D. 73-135, 38 FR 13369, May 21, 1973, as amended by T.D. 84-213, 49 
FR 41185, Oct. 19, 1984]

                          Appendix to Part 145

    A. Scope. The Customs Service is authorized to examine, with certain 
exceptions for diplomatic and governmental mail, all mail arriving from 
outside the Customs territory of the United States (CTUS) which is to be 
delivered within the CTUS, and all mail arriving from outside the U.S. 
Virgin Islands which is to be delivered within the U.S. Virgin Islands. 
The term ``Customs territory of the United States'' is limited to the 
States, the District of Columbia, and Puerto Rico. Consequently, mail 
arriving from other U.S. territories and possessions is subject to 
Customs examination even though it is designated ``domestic'' mail for 
Postal Service

[[Page 92]]

purposes. Likewise, mail in the APO/FPO military postal system is 
subject to Customs examination, even though it also is designated 
``domestic'' mail for Postal Service purposes. The Customs Service 
therefor is responsible for examining all international mail to be 
delivered in the CTUS and certain limited categories of so-called 
``domestic mail''.
    B. Definitions. Under various international conventions and 
bilateral agreements, international mail falls within two main classes, 
Parcel Post and Postal Union mail.
    Parcel Post is not permitted to contain correspondence but is to be 
used for the transmission of merchandise and is fully subject to Customs 
examination in the same manner as other merchandise shipments (e.g., 
luggage, cargo, containers, etc.). Postal Union mail is divided into 
``LC'' mail (Lettres et Cartes) and ``AO'' mail (Aures Objets).
    ``LC mail consists of letters, packages paid at the letter rate of 
postage, post cards, and aerogrammes. The term ``letter class mail'' as 
used in the Customs Regulations and in this policy statement means 
``LC'' mail as well as equivalent articles in ``domestic'' mail subject 
to Customs examination. Equivalent articles in ``domestic'' mail would 
include articles mailed at the letter rate, or equivalent class or 
category, in the APO/FPO military system or from a U.S. territory or 
possession outside the CTUS. Since the term ``letter class mail'' thus 
includes packages and bulky envelopes as long as they are mailed at the 
letter rate, or equivalent class or category, the restrictions relating 
to opening and reading of correspondence apply equally to such packages 
or bulky envelopes.
    ``AO'' mail is to be treated in the same manner as Parcel Post mail 
since the Universal Postal Union Convention requires that they ``be made 
up in such a manner that they may be easily examined'' and generally are 
not permitted to ``contain any document having the character of current 
and personal correspondence.'' Exceptions to the latter requirement 
exist for matter for the blind and certain correspondence between school 
children. Because of these exceptions, the prohibition against reading 
correspondence without a search warrant or authorization of the sender 
or addressee applies to correspondence of the blind and correspondence 
between school children contained in ``AO'' mail. ``AO'' mail can 
usually be identified by the following words: ``Imprime'' or ``Printed 
Matter'', ``Cecogramme'' or ``Literature for the Blind'', ``Petit 
Paquet'' or ``Small Packet'' or similar terms or their equivalents.
    C. Reasonable Cause to Suspect. Determining whether there is 
``reasonable cause to suspect'' that merchandise or contraband is 
contained in sealed letter class mail is ultimately a matter of judgment 
for each Customs official, based on all relevant facts and 
circumstances. This judgment should be exercised within the framework of 
the Customs regulation that sealed letter class mail which appears to 
contain only correspondence is not to be opened unless a search warrant 
or written authorization from either the sender or the addressee has 
been obtained in advance of the opening.
    Past practice indicates that the following circumstances (which are 
illustrative and not exhaustive) provide ``reasonable cause to suspect'' 
and permit the opening of sealed letter class mail without a search 
warrant or authorization of the sender or addressee.
    1. A detector dog has alerted to the presence of narcotics or 
explosives in a specific mail article.
    2. X-ray of fluoroscope examination indicates the presence of 
merchandise or contraband.
    3. The weight, shape, feel, or sound of the mail article or its 
contents may indicate that merchandise or contraband (e.g., a hard 
object which may be jewelry, a stack of paper which may be counterfeit 
money, or coins) could be in the mail article. Contents of a mail 
article which feel lumpy, powdery, or spongy may, for example, indicate 
the presence of narcotics.
    4. Information from a source previously shown to be reliable 
indicates that an identifiable mail article contains merchandise or 
contraband.
    5. The mail article is insured.
    6. The mail article is a box, carton, or wrapper other than a thin 
envelope.
    7. The sender or addressee of the mail article is known to be 
fictitious.
    On the other hand, certain facts standing alone generally will not 
provide ``reasonable cause to suspect'' the presence of merchandise or 
contraband and therefore do not permit the opening of sealed letter 
class mail. For example, sealed letter class mail may not be opened 
merely because:
    1. The mail article is registered.
    2. The feel of a letter-size envelope suggests that it contains one 
or a limited number of photographs.
    3. The mail article appears to be part of a mass mailing.
    4. The mail article is from a particular country, whether or not a 
known source country of contraband.
    5. A detector dog has alerted to the presence of narcotics or 
explosives somewhere within a tray of mail ( the individual articles of 
mail must then be examined individually).
    6. The sender of addressee of the mail article is known to have 
mailed or received contraband or merchandise in violation of law in the 
past.
    7. The wrapper contains writing or typing similar to that previously 
found on articles of mail which contained contraband or merchandise in 
violation of law.

[[Page 93]]

    In case where any one of the above facts is present, additional 
evidence must exist which in conjunction with that fact provides 
reasonable cause to suspect the presence of merchandise or contraband.

[T.D. 78-102, 43 FR 14454, Apr. 6, 1978, as amended by T.D. 83-212, 48 
FR 46771, Oct. 14, 1983]



PART 146_FOREIGN TRADE ZONES--Table of Contents




Sec.
146.0 Scope.

                      Subpart A_General Provisions

146.1 Definitions.
146.2 Port director as Board representative.
146.3 Customs supervision.
146.4 Operator responsibility and supervision.
146.5 [Reserved]
146.6 Procedure for activation.
146.7 Zone changes.
146.8 Seals; authority of operator to break and affix.
146.9 Permission of operator.
146.10 Authority to examine merchandise.
146.11 Transportation of merchandise to a zone.
146.12 Use of zone by carrier.
146.13 Customs forms and procedures.
146.14 Retail trade within a zone.

          Subpart B_Inventory Control and Recordkeeping System

146.21 General requirements.
146.22 Admission of merchandise to a zone.
146.23 Accountability for merchandise in a zone.
146.24 Transfer of merchandise from a zone.
146.25 Annual reconciliation.
146.26 System review.

              Subpart C_Admission of Merchandise to a Zone

146.31 Admissibility of merchandise into a zone.
146.32 Application and permit for admission of merchandise.
146.33 Temporary deposit for manipulation.
146.34 Merchandise transiting a zone.
146.35 Temporary deposit in a zone; incomplete documentation.
146.36 Examination of merchandise.
146.37 Operator admission responsibilities.
146.38 Certificate of arrival of merchandise.
146.39 Direct delivery procedures.
146.40 Operator responsibilities for direct delivery.

                Subpart D_Status of Merchandise in a Zone

146.41 Privileged foreign status.
146.42 Nonprivileged foreign status.
146.43 Domestic status.
146.44 Zone-restricted status.

               Subpart E_Handling of Merchandise in a Zone

146.51 Customs control of merchandise.
146.52 Manipulation, manufacture, exhibition or destruction; Customs 
          Form 216.
146.53 Shortages and overages.

              Subpart F_Transfer of Merchandise From a Zone

146.61 Constructive transfer to Customs territory.
146.62 Entry.
146.63 Entry for consumption.
146.64 Entry for warehouse.
146.65 Classification, valuation, and liquidation.
146.66 Transfer of merchandise from one zone to another.
146.67 Transfer of merchandise for exportation.
146.68 Transfer for transportation or exportation; estimated production.
146.69 Supplies, equipment, and repair material for vessels or aircraft.
146.70 Transfer of zone-restricted merchandise into Customs territory.
146.71 Release and removal of merchandise from zone.

               Subpart G_Penalties; Suspension; Revocation

146.81 Penalties.
146.82 Suspension.
146.83 Revocation of zone grant.

        Subpart H_Petroleum Refineries in Foreign-Trade Subzones

146.91 Applicability.
146.92 Definitions.
146.93 Inventory control and recordkeeping system.
146.94 Records concerning establishment of manufacturing period.
146.95 Methods of attribution.
146.96 Approval of other recordkeeping systems.

Appendix to Part 146--Guidelines for Determining Producibility and 
          Relative Values for Oil Refinery Zones

    Authority: 19 U.S.C. 66, 81a-81u, 1202 (General Note 23, Harmonized 
Tariff Schedule of the United States), 1623, 1624.

    Source: T.D. 86-16, 51 FR 5049, Feb. 11, 1986, unless otherwise 
noted.

[[Page 94]]



Sec. 146.0  Scope.

    Foreign trade zones are established under the Foreign Trade Zones 
Act and the general regulations and rules of procedure of the Foreign 
Trade Zones Board contained in 15 CFR part 400. This part 146 of the 
Customs Regulations governs the admission of merchandise into a foreign 
trade zone, manipulation, manufacture, or exhibition in a zone; 
exportation of the merchandise from a zone; and transfer of merchandise 
from a zone into Customs territory.



                      Subpart A_General Provisions



Sec. 146.1  Definitions.

    (a) The following words, defined in section 1 of the Foreign-Trade 
Zones Act of 1934, as amended (19 U.S.C. 81a), are given the same 
meaning when used in this part, unless otherwise stated: ``Board'', 
``Grantee'', and ``Zones''.
    (b) The following are general definitions for the purpose of this 
part:
    Act. ``Act'' means the Foreign-Trade Zones Act of June 18, 1934, as 
amended (48 Stat. 998-1003; 19 U.S.C. 81a-u).
    Activation. ``Activation'' means approval by the grantee and port 
director for operations and for the admission and handling of 
merchandise in zone status.
    Admit. ``Admit'' means to bring merchandise into a zone with zone 
status.
    Alteration. ``Alteration'' means a change in the boundaries of an 
activated zone or subzone; activation of a separate site of an already-
activated zone or subzone with the same operator at the same port; or 
the relocation of an already-activated site with the same operator.
    Conditionally admissible merchandise. ``Conditionally admissible 
merchandise'' is merchandise which may be imported into the U.S. under 
certain conditions. Merchandise which is subject to permits or licenses, 
or which may be reconditioned to bring it into compliance with the laws 
administered by various Federal agencies, is an example of conditionally 
admissible merchandise.
    Constructive transfer. ``Constructive transfer'' is a legal fiction 
which permits acceptance of a Customs entry for merchandise in a zone 
before its physical transfer to the Customs territory.
    Customs territory. ``Customs territory'' is the territory of the 
U.S. in which the general tariff laws of the U.S. apply. ``Customs 
territory of the United States'' includes only the States, the District 
of Columbia, and Puerto Rico. (General Note 2, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202)).
    Deactivation. ``Deactivation'' means voluntary discontinuation of 
the activation of an entire zone or subzone by the grantee or operator. 
Discontinuance of the activated status of only a part of a zone site is 
an alteration.
    Default. ``Default'' means an action or omission that will result in 
a claim for duties, taxes, charges, or liquidated damages under the 
Foreign Trade Zone Operator Bond.
    Domestic merchandise. ``Domestic merchandise'' is merchandise which 
has been (i) produced in the U.S. and not exported therefrom, or (ii) 
previously imported into Customs territory and properly released from 
Customs custody.
    Foreign merchandise. ``Foreign merchandise'' is imported merchandise 
which has not been properly released from Customs custody in Customs 
territory.
    Fungible merchandise. ``Fungible merchandise'' means merchandise 
which for commercial purposes is identical and interchangeable in all 
situations.
    Merchandise. ``Merchandise'' includes goods, wares and chattels of 
every description, except prohibited merchandise. Building materials, 
production equipment, and supplies for use in operation of a zone are 
not ``merchandise'' for the purpose of this part.
    Operator. ``Operator'' is a corporation, partnership, or person that 
operates a zone or subzone under the terms of an agreement with the zone 
grantee. Where used in this part, the term ``operator'' also applies to 
a ``grantee'' that operates its own zone.
    Port Director. For those foreign trade zones located within the 
geographical limits of a port of entry, the term ``port director'' means 
the director of that port of entry. For those foreign trade zones 
located outside the geographical limits of a port of entry, the

[[Page 95]]

term ``port director'' means the director of the port of entry 
geographically nearest to where the foreign trade zone is located.
    Prohibited merchandise. ``Prohibited merchandise'' is merchandise 
the importation of which is prohibited by law on grounds of public 
policy or morals, or any merchandise which is excluded from a zone by 
order of the Board. Books urging treason or insurrection against the 
U.S., obscene pictures, and lottery tickets are examples of prohibited 
merchandise.
    Reactivation. ``Reactivation'' means a resumption of the activated 
status of an entire area that was previously deactivated without any 
change in the operator or the area boundaries. If the boundaries are 
different, the action is an alteration. If the operator is different, it 
is an activation.
    Subzone. ``Subzone'' is a special-purpose zone established as part 
of a zone project for a limited purpose, that cannot be accommodated 
within an existing zone. The term ``zone'' also applies to a subzone, 
unless specified otherwise.
    Transfer. ``Transfer'' means to take merchandise with zone status 
from a zone for consumption, transportation, exportation, warehousing, 
cartage or lighterage, vessel supplies and equipment, admission to 
another zone, and like purposes.
    Unique identifier. ``Unique identifier'' means the numbers, letters, 
or combination of numbers and letters that identify merchandise admitted 
to a zone with zone status.
    User. ``User'' means a person or firm using a zone or subzone for 
storage, handling, or processing of merchandise.
    Zone lot. ``Zone lot'' means a collection of merchandise maintained 
under an inventory control method based on specific identification of 
merchandise admitted to a zone by lot.
    Zone site. ``Zone site'' means the physical location of a zone or 
subzone.
    Zone status. ``Zone status'' means the status of merchandise 
admitted to a zone, i.e., nonprivileged foreign, privileged foreign, 
zone restricted, or domestic.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988; T.D. 99-27, 64 FR 13674, Mar. 22, 1999]



Sec. 146.2  Port director as Board representative.

    The appropriate port director shall be in charge of the zone as the 
representative of the Board.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 99-27, 64 FR 
13676, Mar. 22, 1999]



Sec. 146.3  Customs supervision.

    (a) Assignment of Customs officers. Customs officers will be 
assigned or detailed to a zone as necessary to maintain appropriate 
Customs supervision of merchandise and records pertaining thereto in the 
zone, and to protect the revenue.
    (b) Supervision. Customs supervision over any zone or transaction 
provided for in this part will be in accordance with Sec. 101.2(c) of 
this chapter. The port director may direct a Customs officer to 
supervise any transaction or procedure at a zone. Supervision may be 
performed through a periodic audit of the operator's records, quantity 
count of goods in a zone inventory, spot check of selected transactions 
or procedures, or review of recordkeeping, security, or conditions of 
storage in a zone.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 98-22, 63 FR 
11826, Mar. 11, 1998]



Sec. 146.4  Operator responsibility and supervision.

    (a) Supervision. The operator shall supervise all admissions, 
transfers, removals, recordkeeping, manipulations, manufacturing, 
destruction, exhibition, physical and procedural security, and 
conditions of storage in the zone as required by law and regulations. 
Supervision by the operator shall be that which a prudent manager of a 
storage, manipulation, or manufacturing facility would be expected to 
exercise, and may take into account the degree of supervision exercised 
by the zone user having physical possession of zone merchandise.
    (b) Customs access. The operator shall permit any Customs officer 
access to a zone.
    (c) Safekeeping of merchandise and records. The operator is 
responsible for safekeeping of merchandise and records concerning 
merchandise admitted to a

[[Page 96]]

zone. The operator, at its liability, may allow the zone importer or 
owner of the goods to store, safeguard, and otherwise maintain or handle 
the goods and the inventory records pertaining to them.
    (d) Records maintenance. The operator shall (1) maintain the 
inventory control and recordkeeping system in accordance with the 
provisions of subpart B, (2) retain all records required in this part 
and defined in Sec. 162.1(a) of this chapter, pertaining to zone 
merchandise for 5 years after the merchandise is removed from the zone, 
and (3) protect proprietary information in its custody from unauthorized 
disclosure. Records shall be readily available for Customs review at the 
zone.
    (e) Merchandise security. The operator shall maintain the zone and 
establish procedures adequate to ensure the security of merchandise 
located in the zone in accordance with applicable Customs security 
standards and specifications.
    (f) Storage and handling. The operator shall store and handle 
merchandise in a zone in a safe and sanitary manner to minimize damage 
to the merchandise, avoid hazard to persons, and meet local, state, and 
Federal requirements applicable to a specific kind of goods. All trash 
and waste will be promptly removed from a zone. Aisles will be 
established and maintained, and doors and entrances left unblocked for 
access by Customs officers and other persons in the performance of their 
official duties.
    (g) Guard service. The operator is authorized to provide guards or 
contract for guard service to safeguard the merchandise and ensure the 
security of the zone. This authorization does not limit the authority of 
the port director to assign Customs guards to protect the revenue under 
section 4 of the Act (19 U.S.C. 81d).
    (h) Miscellaneous responsibilities. The operator is responsible for 
complying with requirements for admission, manipulation, manufacture, 
exhibition, or destruction, shortage, or overage; inventory control and 
recordkeeping systems, transfer to Customs territory, and other 
requirements as specified in this part. If the operator elects to 
transfer merchandise from within the district boundaries (see definition 
of ``district'' at Sec. 112.1) to his zone, he shall receipt for the 
merchandise at the time he picks it up for transportation to his 
facility. He becomes liable for the merchandise at that time.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 
51496, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 99-
27, 64 FR 13676, Mar. 22, 1999]



Sec. 146.5  [Reserved]



Sec. 146.6  Procedure for activation.

    (a) Application. A zone operator, or where there is no operator, a 
grantee, shall make written application to the port director to obtain 
approval of activation of a zone or zone site. The area to be activated 
may be all or any portion of the zone approved by the Board. The 
application must include a description of all the zone sites covered by 
the application, any operation to be conducted therein, and a statement 
of the general character of the merchandise to be admitted. The port 
director may also require the operator or grantee to submit fingerprints 
on form FD 258 or electronically at the time of filing the application. 
If the operator is an individual, that individual's fingerprints may be 
required. If the operator or grantee is a business entity, fingerprints 
of all officers and managing officials may be required.
    (b) Supporting documents. The application must be accompanied by the 
following:
    (1) [Reserved]
    (2) A blueprint of the area approved by the Board to be activated 
showing area measurements, including all openings and buildings; and all 
outlets, inlets, and pipelines to any tank for the storage of liquid or 
similar product, that portion of the blueprint certified to be correct 
by the operator of the tank;
    (3) A gauge table, when appropriate, showing the capacity, in the 
appropriate unit, of any tank, certified to be correct by the operator 
of the tank;
    (4) A procedures manual describing the inventory control and 
recordkeeping system that will be used in the zone, certified by the 
operator or grantee to meet the requirements of subpart B; and

[[Page 97]]

    (5) The written concurrence of the grantee, when the operator 
applies for activation, in the requested zone activation.
    (c) Inquiry by port director. As a condition of approval of the 
application, the port director may order an inquiry by a Customs officer 
into:
    (1) The qualifications, character, and experience of an operator 
and/or grantee and their principal officers; and
    (2) The security, suitability, and fitness of the facility to 
receive merchandise in a zone status.
    (d) Decision of the port director. The port director shall promptly 
notify the applicant in writing of his decision to approve or deny the 
application to activate the zone. If the application is denied, the 
notification will state the grounds for denial which need not be limited 
to those listed in Sec. 146.82. The decision of the port director will 
be the final Customs administrative determination in the matter. On 
approval of the application, a Foreign Trade Zone Operator's Bond shall 
be executed on Customs Form 301, containing the bond conditions of Sec. 
113.73 of this chapter.
    (e) Activation. Upon the port director's approval of the application 
and acceptance of the executed bond, the zone or zone site will be 
considered activated; and merchandise may be admitted to the zone. 
Execution of the bond by an operator does not lessen the liability of 
the grantee to comply with the Act and implementing regulations.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 93-18, 58 FR 
15773, Mar. 24, 1993; T.D. 95-99, 60 FR 62733, Dec. 7, 1995; T.D. 99-27, 
64 FR 13676, Mar. 22, 1999; T.D. 01-14, 66 FR 8767, Feb. 2, 2001]



Sec. 146.7  Zone changes.

    (a) Alteration of an activated area. An operator shall make written 
application to the port director for approval of an alteration of an 
activated area, including an alteration resulting from a zone boundary 
modification. The application must be accompanied by the supporting 
document requirements specified in Sec. 146.6, as applicable. The port 
director may review the security, suitability, and fitness of the area, 
and shall reply to the applicant as provided for in Sec. 146.6.
    (b) Deactivation or reactivation. A grantee, or an operator with the 
concurrence of a grantee, shall make written application to the port 
director for deactivation of a zone site, indicating by layout or 
blueprint the exact site to be deactivated. The port director shall not 
approve the application unless all merchandise in the site in zone 
status (other than domestic status) has been removed at the risk and 
expense of the operator. The port director may require an accounting of 
all merchandise in a zone as a condition of approving the deactivation. 
A zone may be reactivated using the above procedure if a sufficient bond 
is on file under Sec. 146.6(d).
    (c) Suspension of activated site. When approval of an activated 
status has been suspended through the procedure in subpart G, the port 
director may require all goods in that area in zone status (other than 
domestic status) to be transferred to another zone, a bonded warehouse, 
or other location where they may lawfully be stored, if the port 
director considers that transfer advisable to protect the revenue or 
administer any Federal law or regulation.
    (d) New bond. The port director may require an operator to furnish, 
on 10 days notice, a new Foreign Trade Zone Operator's Bond on Customs 
Form 301. If the operator fails to furnish the new bond, no more 
merchandise will be received in the zone in zone status. Merchandise in 
zone status (other than domestic status) will be removed at the risk and 
expense of the operator. A new bond may be required if (1) the activated 
zone area is substantially altered; (2) the character of merchandise 
admitted to the zone or operations performed in the zone are 
substantially changed; (3) the existing bond lacks good and sufficient 
surety; or (4) for any other reason that substantially affects the 
liability of the operator under the bond. Although a new bond may not be 
required, the operator shall obtain the consent of the surety to any 
material alteration in the boundaries of the zone.
    (e) New operator. A grantee of an activated zone site shall make 
written application to the port director for approval of a new operator, 
submitting with the application a certification by

[[Page 98]]

the new operator that the inventory control and recordkeeping system 
meets the requirements of subpart B, and a copy of the system procedures 
manual if different from the previous operator's manual. The port 
director may order an inquiry into the qualifications, character, and 
experience of the operator and its principal officers.
    (f) The bond in Sec. 146.6 shall be submitted by the operator 
before the operating agreement may become effective in respect to 
merchandise in zone status. The port director shall promptly notify the 
grantee, in writing, of the approval or disapproval of the application.
    (g) List of officers, employees, and other persons. The port 
director may make a written demand upon the operator to submit, within 
30 days after the date of the demand, a written list of the names, 
addresses, social security numbers, and dates and places of birth of 
officers and persons having a direct or indirect financial interest in 
the operator, and of persons employed in the carriage, receipt or 
delivery of merchandise in zone status, whether employed by the zone 
operator or a zone user. If a list was previously furnished, the port 
director may make a written demand for the same information in respect 
to new persons employed in the carriage, receipt, or delivery of zone 
status merchandise within 10 days after such employment. The list need 
not include employees of common or contract carriers transporting goods 
to or from the zone.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 95-99, 60 FR 
62733, Dec. 7, 1995]



Sec. 146.8  Seals, authority of operator to break and affix.

    The port director may authorize an operator to break a Customs in-
bond seal affixed under Sec. 18.4 of this chapter, or under any Customs 
order or directive, on any vehicle or intermodal container containing 
merchandise approved for admission to the zone upon its arrival at the 
zone; or to affix a Customs in-bond seal to any vehicle or intermodal 
container of merchandise for which an entry, withdrawal, or other 
approval document has been obtained for movement in-bond from the zone. 
The authorized affixing or breaking of that seal will be considered to 
have been done under Customs supervision. The operator shall report to 
the port director, upon arrival of the vehicle or container at the zone, 
any seal found to be broken, missing, or improperly affixed, and hold 
the vehicle or container and its contents intact pending instructions 
from the port director. If the operator does not obtain the written 
concurrence of the carrier as to the condition of the seal or delivering 
conveyance, the port director shall deem the seal or delivering 
conveyance to be intact.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986; 51 FR 11012, Apr. 1, 1986]



Sec. 146.9  Permission of operator.

    An application for permission to admit merchandise into a zone, or 
to manipulate, manufacture, exhibit, or destroy merchandise in a zone 
must include the written concurrence of the operator, except where the 
regulations of this part provide for the making of application by the 
operator itself or where the operator files a separate specific or 
blanket application. The written concurrence of the operator in the 
removal of merchandise from a zone is not required because the 
merchandise is released by the port director to the operator for 
delivery from the zone, as provided in Sec. 146.71 (a).



Sec. 146.10  Authority to examine merchandise.

    The port director may cause any merchandise to be examined before or 
at the time of admission to a zone, or at any time thereafter, if the 
examination is considered necessary to facilitate the proper 
administration of any law, regulation, or instruction which Customs is 
authorized to enforce.



Sec. 146.11  Transportation of merchandise to a zone.

    (a) From outside Customs territory. Merchandise may be admitted 
directly to a zone from any place outside Customs territory.
    (b) Through Customs territory, foreign merchandise. Foreign 
merchandise destined to a zone and transported in-bond

[[Page 99]]

through Customs territory will be subject to the laws and regulations 
applicable to other merchandise transported in-bond between two places 
in Customs territory.
    (c) From Customs territory, domestic merchandise. Domestic 
merchandise may be admitted to a zone from Customs territory by any 
means of transportation which will not interfere with the orderly 
conduct of business in the zone.
    (d) From a bonded warehouse. Merchandise may be withdrawn from a 
bonded warehouse under the procedures in Sec. 144.37(g) of this chapter 
and transferred to a zone for admission in zone-restricted status.



Sec. 146.12  Use of zone by carrier.

    (a) Primary use; lading and unlading. The water area docking 
facilities, and any lading and unlading stations of a zone are intended 
primarily for the unlading of merchandise into the zone or the lading of 
merchandise for removal from the zone. Their use for other purposes may 
be terminated by Customs if found to endanger the revenue, or by the 
Board if found to impede the primary use of the zone.
    (b) Carrier in zone not exempt from law or regulations. Nothing in 
the Act or the regulations in this part shall be construed as excepting 
any carrier entering, remaining in, or leaving a zone from the 
application of any other law or regulation.



Sec. 146.13  Customs forms and procedures.

    Where a Customs form or other document is required in this part, the 
number of copies of the form or document required to be presented and 
their manner of distribution and processing shall be determined by the 
port director, except as otherwise specified in this part.



Sec. 146.14  Retail trade within a zone.

    Retail trade is prohibited within a zone except as provided in 19 
U.S.C. 81o(d). See also the regulations of the Board as contained in 15 
CFR part 400.



          Subpart B_Inventory Control and Recordkeeping System



Sec. 146.21  General requirements.

    (a) Systems capability. The operator shall maintain either manual or 
automated inventory control and recordkeeping systems or combination 
manual and automated systems capable of:
    (1) Accounting for all merchandise, including domestic status 
merchandise, temporarily deposited, admitted, granted a zone status and/
or status change, stored, exhibited, manipulated, manufactured, 
destroyed, transferred, and/or removed from a zone;
    (2) Producing accurate and timely reports and documents as required 
by this part;
    (3) Identifying shortages and overages of merchandise in a zone in 
sufficient detail to determine the quantity, description, tariff 
classification, zone status, and value of the missing or excess 
merchandise;
    (4) Providing all the information necessary to make entry for 
merchandise being transferred to the Customs territory;
    (5) Providing an audit trail to Customs forms from admission through 
manipulation, manufacture, destruction or transfer of merchandise from a 
zone either by zone lot or Customs authorized inventory method.
    (b) Procedures manual. (1) The operator shall provide the port 
director with an English language copy of its written inventory control 
and recordkeeping systems procedures manual in accordance with the 
requirements of this part.
    (2) The operator shall keep current its procedures manual and shall 
submit to the port director any change at the time of its 
implementation.
    (3) The operator may authorize a zone user to maintain its 
individual inventory control and recordkeeping system and procedures 
manual. The operator shall furnish a copy of the zone user's procedures 
manual, including any subsequent changes, to the port director. However, 
the operator will remain responsible to Customs and liable under its 
bond for supervision, defects in, or failures of a system.

[[Page 100]]

    (4) The operator's procedures manual and subsequent changes will be 
furnished to the port director for information purposes only. Customs 
receipt of a manual does not indicate approval or rejection of a system.
    (c) Liability of operator. Upon zone activation approval the 
operator remains liable for complying with all inventory control and 
recordkeeping system requirements set forth in this part.



Sec. 146.22  Admission of merchandise to a zone.

    (a) Identification. All merchandise will be recorded in a receiving 
report or document using a zone lot number or unique identifier. All 
merchandise, except domestic status merchandise for which no permit for 
admission is required under Sec. 146.43, will be traceable to a Customs 
Form 214 and accompanying documentation.
    (b) Reconciliation. Quantities received will be reconciled to a 
receiving report or document such as an invoice with any discrepancy 
reported to the port director as provided in Sec. 146.37.
    (c) Incomplete documentation. Merchandise received without complete 
Customs documentation or which is unacceptable to the inventory control 
and recordkeeping system will be recorded in a suspense account or 
record until documentation is complete or the system is capable of 
accepting the information, at which time it will be formally admitted to 
the zone under Sec. 146.32 or 146.40. The receiving report or document 
will provide sufficient information to identify the merchandise and 
distinguish it from other merchandise. The suspense account or record 
will be completely documented for Customs review to explain the 
differences noted and corrections made.
    (d) Recordation. Merchandise received will be accurately recorded in 
the inventory system records from the receiving report or document using 
the zone lot number or unique identifier for traceability. The inventory 
record will state the quantity and date admitted, cost or value where 
applicable, zone status, and description of the merchandise, including 
any part or stock number.
    (e) Harbor maintenance fee. When imported cargo is unloaded from a 
commercial vessel at a U.S. port and admitted into a foreign trade zone, 
the applicant for admission of that cargo into the zone may be subject 
to the harbor maintenance fee as set forth in Sec. 24.24 of this 
chapter.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 87-44, 52 FR 
10211, Mar. 30, 1987; 52 FR 10970, Apr. 6, 1987]



Sec. 146.23  Accountability for merchandise in a zone.

    (a) Identification of merchandise--(1) General. A zone lot number or 
unique identifier will be used to identify and trace merchandise.
    (2) Fungible merchandise. Fungible merchandise may be identified by 
an inventory method authorized by Customs, which is consistently 
applied, such as First-In-First-Out (FIFO) and using a unique 
identifier.
    (b) Inventory records. The inventory records will specify by zone 
lot number or unique identifier:
    (1) Location of merchandise;
    (2) Zone status;
    (3) Cost or value, unless operator's or user's financial records 
maintain cost or value and the records are made available for Customs 
review;
    (4) Beginning balance, cumulative receipts and removals, 
adjustments, and current balance on hand by date and quantity;
    (5) Destruction of merchandise; and
    (6) Scrap, waste, and by-products.
    (c) Physical inventory. The operator shall take at least an annual 
physical inventory of all merchandise in the zone (unless continuous 
cycle counts are taken as part of an ongoing inventory control program) 
with prior notification of the date(s) given to Customs for any 
supervision of the inventory deemed necessary. The operator shall notify 
the port director of any discrepancies in accordance with Sec. 146.53.



Sec. 146.24  Transfer of merchandise from a zone.

    (a) Accountability. (1) All zone status merchandise transferred from 
a zone will be accurately recorded within the inventory control and 
recordkeeping system.
    (2) The inventory control and recordkeeping system for merchandise 
transfers must have the capability to trace

[[Page 101]]

all transfers back to a zone admission under a Customs authorized 
inventory method.
    (b) Information. The inventory control and recordkeeping system must 
be capable of providing all information necessary to make entry for 
transfer of merchandise from the zone.



Sec. 146.25  Annual reconciliation.

    (a) Report. The operator shall prepare a reconciliation report 
within 90 days after the end of the zone/subzone year unless the port 
director authorizes an extension for reasonable cause. The operator 
shall retain that annual reconciliation report for a spot check or audit 
by Customs, and need not furnish it to Customs unless requested. There 
is no form specified for the preparation of the report.
    (b) Information required. The report must contain a description of 
merchandise for each zone lot or unique identifer, zone status, quantity 
on hand at the beginning of the year, cumulative receipts and transfers 
(by unit), quantity on hand at the end of the year, and cumulative 
positive and negative adjustments (by unit) made during the year.
    (c) Certification. The operator shall submit to the port director 
within 10 working days after the annual reconciliation report, a letter 
signed by the operator certifying that the annual reconciliation has 
been prepared, is available for Customs review, and is accurate. The 
certification letter must contain the name and street address of the 
operator, where the required records are available for Customs review; 
and the name, title, and telephone number of the person having custody 
of the records. Reporting of shortages and overages based on the annual 
reconciliation will be made in accordance with Sec. 146.53. These 
reports must accompany the certification letter.



Sec. 146.26  System review.

    The operator shall perform an annual internal review of the 
inventory control and recordkeeping system and shall report to the port 
director any deficiency discovered and corrective action taken, to 
ensure that the system meets the requirements of this part.



              Subpart C_Admission of Merchandise to a Zone



Sec. 146.31  Admissibility of merchandise into a zone.

    Merchandise of every description may be admitted into a zone unless 
prohibited by law. A distinction is made between prohibited and 
conditionally admissible merchandise.
    (a) Prohibited merchandise. Port directors shall not admit 
prohibited merchandise. If there is a question as to whether the 
merchandise may be prohibited, port directors may permit the temporary 
deposit of the merchandise in a zone pending a final determination of 
its status. Any prohibited merchandise which is found within a zone will 
be disposed of in the manner provided for in the laws and regulations 
applicable to that merchandise.
    (b) Conditionally admissible merchandise. The admission of this 
merchandise into a zone is subject to the regulations of the Federal 
agency concerned.



Sec. 146.32  Application and permit for admission of merchandise.

    (a) Application on Customs Form 214 and permit. Merchandise may be 
admitted into a zone only upon application on a uniquely and 
sequentially numbered Customs Form 214 (``Application for Foreign Trade 
Zone Admission and/or Status Designation'') and the issuance of a permit 
by the port director. Exceptions to the Customs Form 214 requirement are 
for merchandise temporarily deposited (Sec. 146.33), transiting 
merchandise (Sec. 146.34), or domestic merchandise admitted without 
permit (Sec. 146.43). The applicant for admission shall present the 
application to the port director and shall include a statistical copy on 
Customs Form 214-A for transmittal to the Bureau of Census, unless the 
applicant has made arrangements for the direct transmittal of 
statistical information to that agency.
    (b) Supporting documents--(1) Commercial documentation. The 
applicant shall submit with the application two copies of an examination 
invoice meeting the requirements of subpart F, part 141, of

[[Page 102]]

this chapter, for any merchandise, other than that excepted in paragraph 
(a) of this section, to be admitted to a zone. The notation of tariff 
classification and value required by Sec. 141.90 of this chapter need 
not be made, unless the merchandise is to be admitted in privileged 
status.
    (2) Evidence of right to make entry. The applicant for admission 
shall submit with the application a document similar to that which would 
be required as evidence of the right to make entry for merchandise in 
Customs territory under Sec. 141.11 or Sec. 141.12 of this chapter.
    (3) Release order. Merchandise will not be authorized for delivery 
by Customs to a zone until a release order has been executed by the 
carrier which brought the merchandise to the port, unless the 
merchandise is released back to that same carrier for delivery to the 
zone (see Sec. 141.11 of this chapter). When a release order is 
required, it will be made on any of the forms specified in Sec. 141.111 
of this chapter, or by the following statement attached to Customs Form 
214:

    Authority is hereby given to release the merchandise described in 
this
application to__________________________________________________________
________________________________________________________________________

Name of Carrier_________________________________________________________
________________________________________________________________________

Signature and title of carrier
representative__________________________________________________________
________________________________________________________________________
    A blanket or qualified release order may be authorized for the 
transfer of merchandise to a zone as provided for in Sec. 141.111 of 
this chapter.

    (4) Application to unlade. For merchandise unladen in the zone 
directly from the importing carrier, the application on Customs Form 214 
will be supported by an application to unlade on Customs Form 3171.
    (5) Other documentation. The port director may require additional 
information or documentation as needed to conduct an examination of 
merchandise under Customs selective entry processing criteria, or to 
determine whether the merchandise is admissible to the zone.
    (c) Conditions for issuance of a permit. The port director will 
issue a permit for admission of merchandise to a zone when:
    (1) The application is properly executed and includes the zone 
status desired for the merchandise, as provided in subpart D of this 
part;
    (2) The operator's approval appears either on the application or in 
a separate specific or blanket approval;
    (3) The merchandise is retained for examination at the place of 
unlading, the zone, or other location designated by the port director, 
except for merchandise for direct delivery to a zone under Sec. Sec. 
146.39 and 146.40. The merchandise may be examined as if it were to be 
entered for consumption or warehouse; and
    (4) All requirements have been fulfilled.
    (d) Blanket application for admission of merchandise. Merchandise 
may be admitted to a zone under blanket application upon presentation of 
a Customs Form 214 covering more than one shipment of merchandise. A 
blanket application for admission is for:
    (1) Shipments which arrive under one transportation entry as 
described in Sec. 141.55 of this chapter, or
    (2) Shipments which are destined to the same zone applicant on a 
single business day, in which case the applicant shall:
    (i) Present the examination invoices required by paragraph (b) of 
this section to the port director before the merchadise is admitted into 
the zone,
    (ii) Have been approved for the direct transmittal of statistical 
trade information to the Bureau of Census under an agreement with that 
agency; and
    (iii) Have examination invoices containing a unique identifier to 
trace the shipment to the manifest of the carrier that brought the 
merchandise to the port having jurisdiction over the zone, as well as to 
the inventory control and recordkeeping system of the operator as 
described in subpart B.



Sec. 146.33  Temporary deposit for manipulation.

    Imported merchandise for which an entry has been made and which has 
remained in continuous Customs custody may be brought temporarily to a 
zone for manipulation and return to Customs territory under Customs 
supervision, pursuant to section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562),

[[Page 103]]

and Sec. 19.11 of this chapter. That merchandise will not be considered 
within the purview of the Act but will be treated as though remaining in 
Customs territory. No zone form or procedure will be considered 
applicable, but the merchandise will remain subject to any requirements 
necessary for the enforcement of section 562 and other Customs laws 
while in the zone.



Sec. 146.34  Merchandise transiting a zone.

    The following procedure is applicable when merchandise is to be 
unladen from any carrier in the zone for immediate transfer to Customs 
territory, or if it is to be transferred from Customs territory through 
the zone for immediate lading on any carrier in the zone:
    (a) Application. Application for permission to lade or unlade will 
be filed with the port director on Customs Form 3171 prior to transfer 
of the merchandise into the zone.
    (b) Permit. The port director shall permit the transfer unless he 
has reason to believe that the merchandise will not be moved promptly 
from the zone or will be made the subject of an application for 
admission in accordance with Sec. 146.32(a).
    (c) Treatment of merchandise. Upon the issuance of a permit to lade, 
or unlade, the merchandise will be treated as though the lading or 
unlading were in the Customs territory.
    (d) Delay in zone transit. Merchandise delayed while transiting a 
zone must be made the subject of an application for admission in 
accordance with Sec. 146.32, or it must be removed from the zone.



Sec. 146.35  Temporary deposit in a zone; incomplete documentation.

    (a) General. Temporary deposit of merchandise in a zone is allowed 
in circumstances where the information or documentation necessary to 
complete the Customs Form 214 is not available at the time of arrival of 
merchandise within the jurisdiction of the port. The merchandise will be 
subject to examination as provided in Sec. 146.36.
    (b) Application. An application for temporary deposit will be made 
to the port director on a properly signed and uniquely numbered Customs 
Form 214, annotated clearly ``Temporary Deposit in a Zone''.
    (c) Conditions. Merchandise temporarily deposited under the 
provisions of this section has no zone status and is considered to be in 
the Customs territory. It will:
    (1) Be physically segregated from all other zone merchandise;
    (2) Be held under the bond and at the risk of the operator; and
    (3) Be manipulated only to the extent necessary to obtain sufficient 
information about the merchandise to file the appropriate admission or 
entry documentation.
    (d) Approval. The port director shall approve the application for 
temporary deposit of merchandise in a zone if the provisions of 
paragraphs (b) and (c) of this section are met.
    (e) Submission of Customs Form 214. A complete and accurate Customs 
Form 214 will be submitted, as provided in Sec. 146.32, within 5 
working days plus any extension granted by the port director, or the 
merchandise shall be placed in general order.



Sec. 146.36  Examination of merchandise.

    Except for direct delivery procedures provided for in Sec. 146.39, 
all merchandise covered by a Customs Form 214 may be retained for 
Customs examination at the place of unlading, the zone, or another 
location, as designated by the port director. The port director may 
authorize release of the merchandise without examination, as provided in 
Sec. 151.2 of this chapter. If a physical examination is conducted, the 
Customs officer shall note the results of the examination on the 
examination invoices.



Sec. 146.37  Operator admission responsibilities.

    (a) Maintenance of admission documentation. The operator shall 
maintain either:
    (1) Lot file. The operator shall open and maintain a lot file 
containing a copy of the Customs Form 214, the examination invoice, and 
all other documentation necessary to account for the merchandise covered 
by each Customs Form 214. The lot file will be maintained in sequential 
order by using the

[[Page 104]]

unique number assigned to each Customs Form 214 as the file reference 
number; or
    (2) Authorized inventory method. Where a Customs authorized 
inventory method other than a lot system (specific identification of 
merchandise) is used, e.g., First-In-First-Out (FIFO), no lot file is 
required but the operator shall maintain a file of all Customs Form's 
214 in sequential order.
    (b) Examination invoice. The operator shall give a copy of the 
examination invoice to the person making entry to transfer the 
merchandise from the zone upon request of that person or the port 
director.
    (c) Liability for merchandise. The operator will be held liable 
under its bond for the receipt of merchandise admitted in the quantity 
and condition as described on the Customs Form 214, except as modified 
by a discrepancy report:
    (1) Signed jointly by the operator and carrier on the Customs Form 
214 or other approved form within 15 days after admission of the 
merchandise, and reported to the port director within 2 working days 
thereafter; or
    (2) Submitted on Customs Form 5931 under the provisions of subpart 
A, part 158, of this chapter within 20 days after admission of the 
merchandise. The operator may file a Customs Form 5931 on behalf of the 
person who applied for admission of merchandise to the zone.
    (d) Supervision of merchandise. The port director may authorize the 
receipt of zone status merchandise at a zone without physical 
supervision by a Customs officer (see Sec. 146.3). In that case, the 
operator shall supervise the receipt of merchandise into the zone, 
report the receipt and condition of the merchandise, and mark packages 
with the unique Customs Form 214 number so that the merchandise can be 
traced to a particular Customs Form 214. Packages that are accounted for 
under a Customs-authorized inventory method other than specific 
identification, need not be marked with a unique Customs Form 214 number 
but must be adequately identified so Customs can conduct an inventory 
count. The operator shall submit the Custom Form 214 to Customs at the 
location specified by the port director.



Sec. 146.38  Certificate of arrival of merchandise.

    Whenever a certificate prepared by Customs as to the arrival of any 
merchandise in a zone is required by a Federal agency, the port director 
shall issue the document certifying only that authorization to deliver 
the merchandise to a zone has been made. The operator shall issue a 
certificate of arrival of merchandise at a zone.



Sec. 146.39  Direct delivery procedures.

    (a) General. This procedure is for delivery of merchandise to a zone 
without prior application and approval on Customs Form 214.
    (b) Application. An operator, meeting the criteria of paragraph (c) 
of this section, shall file a written application with the port director 
at least 30 days before the special procedure is to become effective. 
The application will describe the merchandise to be handled or 
processed, and the kind of operation which it will undergo in the zone.
    (c) Criteria. The port director shall approve the application if the 
following criteria are met:
    (1) The merchandise is not restricted or of a type which requires 
Customs examination or documentation review before or upon its arrival 
at the zone;
    (2) The merchandise to be admitted to the zone, and the operations 
to be conducted therein, are known well in advance, are predictable and 
stable over the long term, and are relatively fixed in variety by the 
nature of the business conducted at the site; and
    (3) The operator is the owner or purchaser of the goods.
    (d) Application decision. The port director shall promptly notify 
the operator, in writing, of Customs decision on the application. If the 
application is denied, the port director shall specify the reason for 
denial in his reply. The port director's decision will constitute the 
final Customs administrative determination concerning the application.
    (e) Revocation of approval. The port director may revoke the 
approval given under this section if it becomes necessary for Customs 
routinely to examine the merchandise or documentation before or upon 
admission to the zone.

[[Page 105]]



Sec. 146.40  Operator responsibilities for direct delivery.

    (a) Arrival of conveyance. Upon arrival at a subzone or zone site of 
a conveyance containing foreign merchandise, the operator shall:
    (1) Collect in-bond or cartage documentation from the carrier;
    (2) Check the condition of any seal affixed to the conveyance, and 
if broken, missing or improperly affixed, notify the port director and 
receive instructions before unloading the merchandise;
    (3) Check each incoming in-bond and cartage shipment to determine if 
the manifested quantity or the quantity on the cartage document agrees 
with the quantity actually received;
    (4) Sign and date the in-bond or cartage documentation to accept 
responsibility for the merchandise under the Foreign Trade Zone 
Operator's Bond and to relieve the carrier of responsibility.
    (5) Forward the in-bond or cartage documentation so as to reach the 
port director within 2 working days after the date of arrival of the 
conveyance at the subzone or zone site;
    (6) Maintain a file of open in-bond manifests in chronological order 
of date of conveyance arrival to identify shipments that have arrived 
but the entire contents of which have not been admitted to the subzone 
or zone site; and
    (7) Notify the port director, by annotation on the Customs Form 214, 
when the entire contents of a shipment have been admitted.
    (b) Transportation by operator. If merchandise is transported to a 
subzone or zone site by the foreign trade zone operator from a location 
in the district (see definition of ``district'' at Sec. 112.1) in which 
the subzone or zone site is situated, the merchandise is deemed admitted 
at the time the foreign trade zone operator picks it up. At the time of 
pick-up, the operator is responsible for:
    (1) Receipting for the merchandise and recording on the appropriate 
document any discrepancies regarding quantity, condition or the status 
of the seals;
    (2) Transporting the merchandise to the zone or subzone; and
    (3) Ensuring that the zone records reflect that the merchandise is 
received in the zone.
    (c) Admission of merchandise: alternative procedures--(1) Cumulative 
Customs Form 214. If the operator has an agreement with the Bureau of 
Census for direct transmittal of statistical information, he shall 
submit to the port director each business day a properly signed and 
uniquely numbered Customs Form 214 listing all merchandise except for 
domestic status merchandise admitted under Sec. 146.43 recorded into 
the inventory control and recordkeeping system during the previous 
business day. The Customs Form 214 must contain a list of all in-bond 
(I.T.) numbers or the unique number of any cartage document, as well as 
the number of invoices for each I.T. or cartage document, pertaining to 
merchandise which has been entered into the system.
    (2) Individual Customs Form 214. If a cumulative Customs Form 214 is 
not submitted as provided in paragraph (b)(1) of this section, the 
operator shall file with the port director each business day an 
individual Customs Form 214 and 214-A covering each shipment recorded 
into the inventory control and recordkeeping system during the previous 
business day. The forms shall be submitted within 10 days after the end 
of the month in which the merchandise was received in the zone, and no 
extension beyond that time will be approved by the port director.
    (3) General order. Merchandise not admitted into a subzone or zone 
site as provided in this section within 15 calendar days after its 
arrival there shall be disposed of in accordance with the applicable 
procedures in Sec. 4.37 or Sec. 122.50 or Sec. 123.10 of this 
chapter.
    (4) Inventory control and recordkeeping system. The operator shall 
establish and maintain a continuing input quality control program to 
ensure that information concerning merchandise in admission documents, 
verified or corrected by counts and checks, is accurately recorded in 
the inventory control and recordkeeping system. Quantities recorded in 
the system, after allowance by the port director for any discrepancies, 
will be the quantities of merchandise for which the operator

[[Page 106]]

shall be held liable under its bond for admission to the subzone or zone 
site. A discrepancy involving a within-case shortage (or overage) need 
not be reported on Customs Form 5931, if the operator is able to report 
that information in another manner so that the port director can 
determine whether there is liability for the discrepancy under the bond 
of any party to the importation.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 
51497, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 98-
74, 64 FR 6801, Feb. 11, 1999]



                Subpart D_Status of Merchandise in a Zone



Sec. 146.41  Privileged foreign status.

    (a) General. Foreign merchandise which has not been manipulated or 
manufactured so as to effect a change in tariff classification will be 
given status as privileged foreign merchandise on proper application to 
the port director.
    (b) Application. Each application for this status will be made on 
Customs Form 214 at the time of filing the application for admission of 
the merchandise into a zone or at any time thereafter before the 
merchandise has been manipulated or manufactured in the zone in a manner 
which has effected a change in tariff classification.
    (c) Supporting documentation. Each applicant for this status shall 
submit to the port director, with the application, an invoice notated as 
provided for in Sec. 141.90 of this chapter.
    (d) Determination of duties and taxes. Upon receipt of the 
application and accompanying invoice, the port director may examine the 
merchandise to determine whether to approve the application. The 
merchandise will be subject to classification and valuation as provided 
in Sec. 146.65.
    (e) Status as privileged foreign merchandise binding. A status as 
privileged foreign merchandise cannot be abandoned and remains 
applicable to the merchandise even if changed in form by manipulation or 
manufacture, except in the case of recoverable waste (see Sec. 
146.42(b)), as long as the merchandise remains within the purview of the 
Act. However, privileged foreign merchandise may be exported or 
withdrawn for supplies, equipment, or repair material of vessels or 
aircraft without the payment of taxes and duties, in accordance with 
Sec. Sec. 146.67 and 146.69.



Sec. 146.42  Nonprivileged foreign status.

    All of the following will have the status of nonprivileged foreign 
merchandise:
    (a) Foreign merchandise. Foreign merchandise properly in a zone 
which does not have the status of privileged foreign merchandise or of 
zone-restricted merchandise;
    (b) Waste. Waste recovered from any manipulation or manufacture of 
privileged foreign merchandise in a zone; and
    (c) Certain domestic merchandise. Domestic merchandise in a zone, 
which by reason of noncompliance with the regulations in this part has 
lost its identity as domestic merchandise, will be treated as foreign 
merchandise. Any domestic merchandise will be considered to have lost 
its identity if the port director determines that it cannot be 
identified positively by a Customs officer as domestic merchandise on 
the basis of an examination of the articles or consideration of any 
proof that may be submitted promptly by a party-in-interest.



Sec. 146.43  Domestic status.

    (a) General. Domestic status may be granted to merchandise:
    (1) The growth, product, or manufacture of the U.S. on which all 
internal-revenue taxes, if applicable, have been paid;
    (2) Previously imported and on which duty and tax has been paid; or
    (3) Previously entered free of duty and tax.
    (b) Application. No application or permit is required for the 
admission of domestic status merchandise, including domestic packing and 
repair material, to a zone, except upon order of the Commissioner of 
Customs. No application or permit is required for the manipulation, 
manufacture, exhibition, destruction, or transfer to Customs territory 
of domestic status merchandise, including packing and repair materials, 
except: (1) When it is mixed or

[[Page 107]]

combined with merchandise in another zone status, or (2) upon order of 
the Commissioner of Customs. When the Commissioner orders a permit to be 
required for domestic status merchandise, he may also order the 
procedures, forms, and terms under which the permit will be received and 
processed.
    (c) Return of merchandise of Customs territory. Upon compliance with 
the provisions of this section, any of the merchandise specified in 
paragraph (a) of this section, may subsequently be returned to Customs 
territory free of quotas, duty, or tax.



Sec. 146.44  Zone-restricted status.

    (a) General. Merchandise taken into a zone for the sole purpose of 
exportation, destruction (except destruction of distilled spirits, 
wines, and fermented malt liquors), or storage will be given zone-
restricted status on proper application. That status may be requested at 
any time the merchandise is located in a zone, but cannot be abandoned 
once granted. Merchandise in zone-restricted status may not be removed 
to Customs territory for domestic consumption except where the Board 
determines the return to be in the public interest.
    (b) Application. Application for zone-restricted status will be made 
on Customs Form 214.
    (c) Merchandise considered exported--(1) For Customs purposes. If 
the applicant desires a zone-restricted status in order that the 
merchandise may be considered exported for the purpose of any Customs 
law, all pertinent Customs requirements relating to an actual 
exportation shall be complied with as though the admission of the 
merchandise into zone constituted a lading on an exporting carrier at a 
port of final exit from the U.S. Any declaration or form required for 
actual exportation will be modified to show the merchandise has been 
deposited in a zone in lieu of actual exportation, and a copy of the 
approved Customs Form 214 may be accepted in lieu of any proof of 
shipment required in cases of actual exportation.
    (2) For other purposes. If the merchandise is to be considered 
exported for the purpose of any Federal law other than the Customs laws, 
the port director shall be satisfied that all pertinent laws, 
regulations, and rules administered by the Federal agency concerned have 
been complied with before the Customs Form 214 is approved.
    (d) Merchandise entered for warehousing transferred to a zone. 
Merchandise entered for warehousing and transferred to a zone, other 
than temporarily for manipulation and return to Customs territory as 
provided for in Sec. 146.33, will have the status of zone-restricted 
merchandise when admitted into the zone. The application on Customs Form 
214 will state that zone-restricted status is desired for the 
merchandise.



               Subpart E_Handling of Merchandise in a Zone



Sec. 146.51  Customs control of merchandise.

    No merchandise, other than domestic status merchandise provided for 
in Sec. 146.43, will be manipulated, manufactured, exhibited, 
destroyed, or transferred from a zone in any manner or for any purpose, 
except under Customs permit as provided for in this part. The port 
director may require segregation of any zone status merchandise whenever 
necessary to protect the revenue or properly administer U.S. laws or 
regulations.



Sec. 146.52  Manipulation, manufacture, exhibition or destruction; 
Customs Form 216.

    (a) Application. Prior to any action, the operator shall file with 
the port director an application (or blanket application) on Customs 
Form 216 for permission to manipulate, manufacture, exhibit, or destroy 
merchandise in a zone. After Customs approves the application (or 
blanket application), the operator will retain in his recordkeeping 
system the approved application.
    (b) Approval. (1) The port director shall approve the application 
unless (i) the proposed operation would be in violation of law or 
regulation; (ii) the place designated for its performance is not 
suitable for preventing confusion of the identity or status of the 
merchandise, or for safeguarding the revenue; (iii) the port director is 
not satisfied

[[Page 108]]

that the destruction will be effective; or (iv) the Executive Secretary 
of the Board has not granted approval of a new manufacturing operation.
    (2) The port director is authorized to approve a blanket application 
for a period of up to one year for a continuous or repetitive operation. 
The port director may disapprove or revoke approval of any application, 
or may require the operator to file an individual application.
    (c) Appeal of adverse ruling. If an approved application is 
subsequently rescinded by the port director for any reason, the 
applicant or grantee may appeal the adverse ruling pursuant to the 
hearing provisions of Sec. 146.82(b)(2). The rescission shall remain in 
effect pending the decision on the appeal.
    (d) Report results--(1) Separate application. The operator shall 
report on Customs Form 216 the results of an approved manipulation, 
manufacture, exhibition, or certification of destruction (other than by 
a blanket application), unless the port director chooses physically to 
supervise the operation.
    (2) Blanket application. The operator shall maintain a record of an 
approved manipulation, manufacture, exhibition, or certification of 
destruction, in its inventory control and recordkeeping system so as to 
provide an accounting and audit trail of the merchandise through the 
approved operation.
    (e) Destruction. The port director may permit destruction to be done 
outside the zone, in whole or in part and at the risk and expense of the 
applicant, and under such conditions as are necessary to protect the 
revenue, if proper destruction cannot be accomplished within the zone. 
Any residue from the destruction within a zone, which is determined to 
be without commercial value, may be removed to Customs territory for 
disposal.



Sec. 146.53  Shortages and overages.

    (a) Report required. The operator shall report, in writing, to the 
port director upon identification, as such, of any:
    (1) Theft or suspected theft of merchandise;
    (2) Merchandise not properly admitted to the zone; or
    (3) Shortage of one percent (1%) or more of the quantity of 
merchandise in a lot or covered by a unique identifier, if the missing 
merchandise would have been subject to duties and taxes of $100 or more 
upon entry into the Customs territory. The operator shall record upon 
identification all shortages and overages, whether or not they are 
required to be reported to the port director at that time, in its 
inventory control and recordkeeping system. The operator shall record 
all shortages and overages as required in the annual reconciliation 
report under Sec. 146.25.
    (b) Certain domestic merchandise. Except in a case of theft or 
suspected theft, the operator need not file a report with the port 
director, or note in the annual reconciliation report, any shortage or 
overage concerning domestic status merchandise for which no permit is 
required.
    (c) Shortage--(1) Operator responsibility. The operator is 
responsible under its Foreign Trade Zone Operator's Bond for any loss of 
merchandise or for any merchandise which cannot be located or otherwise 
accounted for (except domestic status merchandise for which no permit is 
required), unless the port director is satisfied that the merchandise 
was:
    (i) Never received in the zone;
    (ii) Removed from the zone under proper permit;
    (iii) Not removed from the zone; or
    (iv) Lost or destroyed in the zone through fire or other casualty, 
evaporation, spillage, leakage, absorption, or similar cause, and did 
not enter the commerce of the U.S.
    (2) Liability for duty and taxes. Upon demand of the port director, 
the operator shall make entry for and pay duties and taxes applicable to 
merchandise which is missing or otherwise not accounted for.
    (d) Overage. The person with the right to make entry shall file, 
within 5 days after identification of an overage, an application for 
admission of the merchandise to the zone on Customs Form 214 or file a 
Customs entry for the merchandise. If a Customs Form 214 or a Customs 
entry is not timely filed, and the port director has not

[[Page 109]]

granted an extension of the time provided, the merchandise shall be sent 
to general order.
    (e) Damage. The liability of the operator under its Foreign Trade 
Zone Operator's Bond may be adjusted for the loss of value resulting 
from damage to merchandise occurring in the zone. The operator shall 
segregate, mark, and otherwise secure damaged merchandise to preserve 
its identity as damaged merchandise.



              Subpart F_Transfer of Merchandise From a Zone



Sec. 146.61  Constructive transfer to Customs territory.

    The port director shall accept receipt of any entry in proper form 
provided under this subpart, and the merchandise described therein will 
be considered to have been constructively transferred to Customs 
territory at that time, even though the merchandise remains physically 
in the zone. If the entry is thereafter rejected or cancelled, the 
merchandise will be considered at that time to be constructively 
transferred back into the zone in its previous zone status.



Sec. 146.62  Entry.

    (a) General. Entry for foreign merchandise which is to be 
transferred from a zone, or removed from a zone for exportation or 
transportation to another port, for consumption or warehouse, will be 
made on Customs Form 7512, Customs Form 3461, Customs Form 7501, or 
other applicable Customs forms. If entry is made on Customs Form 3461, 
the person making entry shall file an entry summary for all the 
merchandise covered by the Customs Form 3461 within 10 working days 
after the time of entry.
    (b) Documentation. (1) Customs Form 7501 or the entry summary will 
be accompanied by the entry documentation, including invoices as 
provided in parts 141 and 142 of this chapter. The person with the right 
to make entry shall submit any other supporting documents required by 
law or regulations that relate to the transferred merchandise and 
provide the information necessary to support the admissibility, the 
declared values, quantity, and classification of the merchandise. If the 
declared values are predicated on estimates or estimated costs, that 
information must be clearly stated in writing at the time an entry or 
entry summary is filed.
    (2) Customs Form 7512 for merchandise to be transferred to another 
port or zone or for exportation shall state that the merchandise covered 
is foreign trade zone merchandise; give the number of the zone from 
which the merchandise was transferred; state the status of the 
merchandise; and, if applicable, bear the notation or endorsement 
provided for in Sec. 146.64(c), Sec. 146.66(b), or Sec. 146.70(c).
    (c) Waiver of supporting documents. The port director may waive 
presentation of an invoice and supporting documentation required in 
paragraph (b) of this section with the entry or entry summary, if 
satisfied that presentation of those documents would be impractical, and 
the person making entry or the operator either files invoices and 
supporting documentation with the port director or maintains and makes 
those records available for examination by Customs.



Sec. 146.63  Entry for consumption.

    (a) Foreign merchandise. Merchandise in foreign status or composed 
in part of merchandise in foreign status may be entered for consumption 
from a zone.
    (b) Zone-restricted merchandise. Merchandise in a zone-restricted 
status may be entered for consumption only when the Board has ruled that 
merchandise can be entered for consumption.
    (c) Estimated production--(1) Weekly entry. When merchandise is 
manufactured or otherwise changed in a zone (exclusive of packing) to 
its physical condition as entered within 24 hours before physical 
transfer from the zone for consumption, the port director may allow the 
person making entry to file an entry on Customs Form 3461 for the 
estimated removals of merchandise during the calendar week. The Customs 
Form 3461 must be accompanied by a pro forma invoice or schedule showing 
the number of units of each type of merchandise to be removed during the 
week and their zone and dutiable values. Merchandise covered by an entry

[[Page 110]]

made under the provisions of this section will be considered to be 
entered and may be removed only when the port director has accepted the 
entry on Customs Form 3461. If the actual removals will exceed the 
estimate for the week, the person making entry shall file an additional 
Customs Form 3461 to cover the additional units before their removal 
from the zone. Notwithstanding that a weekly entry may be allowed, all 
merchandise will be dutiable as provided in Sec. 146.65. When estimated 
removals exceed actual removals, that excess merchandise will not be 
considered to have been entered or constructively transferred to the 
Customs territory.
    (2) Individual transfers. After acceptance of the weekly entry, 
individual transfers of merchandise covered by the entry may be made 
from the zone.
    (d) Textiles and textile products. Subject to the existing statutory 
authority of the Board, textiles and textile products admitted into a 
zone, regardless of whether the merchandise has privileged or 
nonprivileged foreign status, which would have been subject to quota or 
visa or export license requirements in their condition at the time of 
importation (if entered for consumption rather than admitted to a zone), 
may not be subsequently transferred into Customs territory for 
consumption if, during the time the merchandise is in the zone, there 
has been a change by manipulation, manufacture, or other means:
    (1) In the country of origin of the merchandise as defined by Sec. 
12.130 of this chapter;
    (2) To exempt from quota or visa or export license requirements 
other than a change brought about by statute, treaty, executive order or 
Presidential proclamation; or
    (3) From one textile category to another textile category.



Sec. 146.64  Entry for warehouse.

    (a) Foreign merchandise. Merchandise in privileged foreign status or 
composed in part of merchandise in privileged foreign status may not be 
entered for warehouse from a zone. Merchandise in nonprivileged foreign 
status containing no components in privileged foreign status may be 
entered for warehouse in the same or at a different port.
    (b) Zone-restricted merchandise. Foreign merchandise in zone-
restricted status may be entered for warehouse in the same or at a 
different port only for storage pending exportation, unless the Board 
has approved another disposition.
    (c) Textiles and textile products. Textiles and textile products 
which have been changed as provided for in Sec. 146.63(d) may be 
entered for warehouse only if the entry is endorsed by the port director 
to show that the merchandise may not be withdrawn for consumption.
    (d) Time limit. Merchandise may neither be placed nor remain in a 
Customs bonded warehouse after 5 years from the date of importation of 
the merchandise.



Sec. 146.65  Classification, valuation, and liquidation.

    (a) Classification--(1) Privileged foreign merchandise. Privileged 
foreign merchandise provided for in this section will be subject to 
tariff classification according to its character, condition and 
quantity, at the rate of duty and tax in force on the date of filing, in 
complete and proper form, the application for privileged status. 
Classification of merchandise subject to a tariff-rate import quota will 
be made only at the higher non-quota duty rate in effect on the date 
privileged foreign status was granted. Notwithstanding the grant of 
privileged status, Customs may correct any misclassification of any such 
entered merchandise when it posts the bulletin notice of liquidation 
under Sec. 159.9 of this chapter.
    (2) Nonprivileged foreign merchandise. Nonprivileged foreign 
merchandise provided for in this section will be subject to tariff 
classification in accordance with its character, condition and quantity 
as constructively transferred to Customs territory at the time the entry 
or entry summary is filed with Customs.
    (b) Valuation--(1) Total zone value. The total zone value of 
merchandise provided for in this section will be determined in 
accordance with the principles of valuation contained in sections 402 
and 500 of the Tariff Act of

[[Page 111]]

1930, as amended by the Trade Agreements Act of 1979 (19 U.S.C. 1401a, 
1500). The total zone value shall be that price actually paid or payable 
to the zone seller in the transaction that caused the merchandise to be 
transferred from the zone. Where there is no price paid or payable, the 
total zone value shall be the cost of all materials and zone processing 
costs related to the merchandise transferred from the zone.
    (2) Dutiable value. The dutiable value of merchandise provided for 
in this section shall be the price actually paid or payable for the 
merchandise in the transaction that caused the merchandise to be 
admitted into the zone, plus the statutory additions contained in 
section 402(b)(1) of the Tariff Act of 1930, as amended by the Trade 
Agreements Act of 1979 (19 U.S.C. 1401a(b)(1)), less, if included, 
international shipment and insurance costs and U.S. inland freight 
costs. If there is no such price actually paid or payable, or no 
reasonable representation of that cost or of the statutory additions, 
the dutiable value may be determined by excluding from the zone value 
any included zone costs of processing or fabrication, general expenses 
and profit and the international shipment and insurance costs and U.S. 
inland freight costs related to the merchandise transferred from the 
zone. The dutiable value of recoverable waste or scrap provided for in 
Sec. 146.42(b) will be the price actually paid or payable to the zone 
seller in the transaction that caused the recoverable waste or scrap to 
be transferred from the zone.
    (3) Allowance. An allowance in the dutiable value of zone 
merchandise may be made by the port director in accordance with the 
provisions of subparts B and C of part 158 of this chapter, for damage, 
deterioration, or casualty while the merchandise is in the zone.
    (c) Liquidation; extension to update cost data. When the declared 
value or values of the merchandise are based on an estimate or 
estimates, the person making entry may request an extension of 
liquidation pending the presentation of updated or actual cost data. A 
request for an extension may be granted at the discretion of the port 
director.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 91-79, 56 FR 
46372, Sept. 12, 1991; T.D. 95-35, 60 FR 20632, Apr. 27, 1995]



Sec. 146.66  Transfer of merchandise from one zone to another.

    (a) At the same port. A transfer of merchandise to another zone with 
a different operator at the same port (including a consolidated port) 
will be by a licensed cartman or a bonded carrier as provided for in 
Sec. 112.2(b) of this chapter or by the operator of the zone for which 
the merchandise is destined under an entry for immediate transportation 
on Customs Form 7512 or other appropriate form with a Customs Form 214 
filed at the destination zone. A transfer of merchandise between zone 
sites at the same port having the same operator may be made under a 
permit on CF 6043 or under a local control system approved by the port 
director wherein any loss of merchandise between sites will be treated 
as if the loss occurred in the zone.
    (b) At a different port. A transfer of merchandise from a zone at 
one port of entry to a zone at another port will be by bonded carrier 
under an entry for immediate transportation on Customs Form 7512. All 
copies of the entry must bear a notation that the merchandise is being 
transferred to another zone designated by its number.
    (c) Forwarding of merchandise history; documentation. When 
merchandise is transferred under the provisions of this section, the 
operator of the transferring zone shall provide the operator of the 
destination zone with the documented history of the merchandise being 
transferred.
    (1) The following documentation must accompany merchandise 
maintained under a lot inventory control system:
    (i) A copy of the original Customs Form(s) 214 with accompanying 
invoices for admission of the merchandise and all components thereof;
    (ii) A copy of any Customs Form 214 filed subsequent to admission to 
change the status of the merchandise or its components; and

[[Page 112]]

    (iii) A copy of any Customs Form 216 to manipulate or manufacture 
the merchandise.
    (2) The following documentation must accompany merchandise not under 
a lot system, and not manufactured in a zone:
    (i) A copy of the original Customs Form(s) 214 with accompanying 
invoices for admission of the merchandise as attributed under the 
particular zone inventory method;
    (ii) A copy of any Customs Form 214 filed subsequent to admission to 
change the status of the merchandise as attributed under the particular 
zone inventory method; and
    (iii) A copy of any Customs Form 216 to manipulate the merchandise 
as attributed under the particular zone inventory method.
    (3) If the documents specified in paragraph (c)(2) of this section 
are not presented, the operator of the transferring zone shall submit 
the following:
    (i) A statement of the zone value, dutiable value, quantity, 
description, unique identifier, and zone status (showing any changes of 
status after admission and whether the merchandise was manipulated so as 
to change its tariff classification) of all the merchandise in the 
shipment covered by the transportation entry; and
    (ii) A certification that the statement in paragraph (c)(3)(i) of 
this section, is true and that the information contained therein is 
contained in the inventory control and recordkeeping system of the 
transferring zone.
    (4) The following documentation must accompany merchandise not under 
a lot system, but manufactured in a zone:
    (i) A statement by the transferring zone operator of the zone value, 
dutiable value, quantity, description, unique identifier, and zone 
status of all the merchandise (and components thereof, where applicable) 
covered by the transportation entry. The statement will also show any 
change in zone status in the transferring zone and whether the 
merchandise has been manufactured or manipulated in the zone so as to 
change its tariff classification; and
    (ii) A certification by the operator of the transferring zone that 
the statement in paragraph (c)(4)(i) of this section is true and the 
information therein is contained in the inventory control and 
recordkeeping system of the zone.
    (5) The operator of the transferring zone shall transmit the 
historical documentation of the merchandise to the receiving zone within 
10 working days after it has been delivered to the bonded carrier for 
transportation. The documentation will be referenced to the I.T. number 
covering the merchandise.
    (d) Arrival at destination zone. Upon arrival of the merchandise at 
the destination zone, it will be admitted under the procedure provided 
for in Sec. 146.32, except that no invoice or Customs examination will 
be required. When the historical documentation is received, the operator 
of the destination zone shall associate it with the Customs Form 214 for 
admission of the merchandise and incorporate that information into the 
zone inventory control and recordkeeping system.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 
51497, Oct. 12, 1994]



Sec. 146.67  Transfer of merchandise for exportation.

    (a) Direct exportation. Any merchandise in a zone may be exported 
directly therefrom (without transfer into Customs territory) upon 
compliance with the procedures of paragraph (b) of this section.
    (b) Immediate exportation. Each transfer of merchandise to the 
Customs territory for exportation at the port where the zone is located, 
will be made under an entry for immediate exportation on Customs Form 
7512. The person making entry shall furnish an export bond on Customs 
Form 301 containing the bond conditions provided for in Sec. 113.62 of 
this chapter.
    (c) Transportation and exportation. Each transfer of merchandise to 
the Customs territory for transportation to and exportation from a 
different port, will be made under an entry for transportation and 
exportation on Customs Form 7512. The bonded carrier will be responsible 
for exportation of the merchandise in accordance with Sec. 18.26 of 
this chapter.
    (d) Textiles and textile products. Textiles and textile products 
which have

[[Page 113]]

been changed as provided for in Sec. 146.63(d) may be exported and 
returned to Customs territory for warehousing provided the entry for 
warehouse is endorsed by the port director to show that the merchandise 
may not be withdrawn for consumption.
    (e) Merchandise produced or manufactured in a zone and returned to 
Customs territory after exportation. Merchandise produced or 
manufactured in a zone and exported without having been transferred to 
Customs territory other than for exportation or for transportation and 
exportation will be subject, on its return to Customs territory, to the 
duties and taxes applicable to like articles of wholly foreign origin, 
unless it is conclusively established that it was produced or 
manufactured exclusively with the use of domestic merchandise. The 
identity of the domestic merchandise must have been maintained in 
accordance with the provisions of this part, in which case that 
merchandise will be subject to the provisions of Chapter 98, Subchapter 
I, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988



Sec. 146.68  Transfer for transportation or exportation; estimated 
production.

    (a) Weekly permit. The port director may allow the person making 
entry for merchandise provided for in Sec. 146.63(c) to file an 
application for a weekly permit to enter and release merchandise during 
a calendar week for exportation, transportation, or transportation and 
exportation. The application will be on Customs Form 7512 stating at the 
top the words ``Application for Weekly Zone Permit,'' and will be filed 
with the port director. The application must be accompanied by a pro 
forma invoice or schedule like that required in Sec. 146.63(c)(1). If 
actual transfers will exceed the estimate for the week, the person with 
the right to make entry shall file a supplemental Customs Form 7512 to 
cover the additional merchandise to be transferred from the subzone or 
zone site. No merchandise covered by the weekly permit may be 
transferred from the zone before approval of the application by the port 
director.
    (b) Individual entries. After approval of the application for a 
weekly permit by the port director, the person making entry will be 
authorized to execute individual Customs Forms 7512 for exportation, 
transportation, or transportation and exportation of the merchandise 
covered by permit. Upon transfer of the merchandise, the operator shall 
obtain a receipt from the carrier on Customs Form 7512 to ensure its 
assumption of liability under the carrier's or cartman's bond. Customs 
will consider the time of entry to be when the removing carrier signs 
the receipt for the merchandise. The operator shall give the bonded 
carrier a copy of the individual Customs Form 7512, as provided for in 
Sec. 18.2(c) of this chapter. The operator also shall ensure that the 
port director receives a copy of the Customs Form 7512 by the end of the 
next working day after the carrier has receipted for the merchandise.
    (c) Statement of merchandise entered. The person making entry for 
merchandise under an approved weekly permit shall file with the port 
director, by the close of business on the second working day of the week 
following the week designated on the permit, a statement of the 
merchandise entered under that permit. The statement must list each 
Customs Form 7512 by its unique I.T. number, and will provide a 
reconciliation of the quantities on the weekly permit with the 
manifested quantities on the individual Customs Forms 7512 submitted to 
Customs, as well as an explanation of any discrepancy.

[T.D. 867-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 00-22, 65 FR 
16518, Mar. 29, 2000]



Sec. 146.69  Supplies, equipment, and repair material for vessels or 
aircraft.

    (a) General. Any merchandise which may be withdrawn duty and tax 
free in Customs territory under section 309 or 317, Tariff Act of 1930, 
as amended (19 U.S.C. 1309, 1317), and under Sec. Sec. 10.59 through 
10.65 of this chapter, may similarly be transferred from a zone, 
regardless of its zone status, under those statutes and regulations. 
Each transfer from a zone for delivery to a qualified

[[Page 114]]

vessel or aircraft, will be made on Customs Form 5512 (see Sec. 10.60 
of this chapter). The person making entry shall furnish a bond on 
Customs Form 301 containing the bond conditions provided for in Sec. 
113.62 of this chapter.
    (b) Merchandise for delivery within zone. Upon acceptance of the 
entry and bond, the port director shall release the merchandise to the 
operator for delivery to the qualified vessel or aircraft for lading in 
the zone.
    (c) Merchandise for delivery outside zone. Upon acceptance of the 
entry and bond, the port director shall release the merchandise to the 
operator for delivery to the bonded cartmen, lighterman, or carrier, for 
transportation through the Customs territory to the qualified lading 
vessel or aircraft.



Sec. 146.70  Transfer of zone-restricted merchandise into Customs territory.

    (a) General. Zone-restricted merchandise may be transferred to 
Customs territory only for entry for exportation, for entry for 
transportation and exportation, for warehousing pending exportation, for 
destruction (except destruction of distilled spirits, wines and 
fermented malt liquors), for transfer from one zone to another, or for 
delivery to a qualified vessel or aircraft or as ground equipment of a 
qualified aircraft under section 309 or 317, Tariff Act of 1930, as 
amended (19 U.S.C. 1309, 1317), unless the Board has ruled that the 
return of the merchandise to Customs territory for domestic consumption 
is in the public interest. With Board approval (See 15 CFR part 400), 
that merchandise may be entered for consumption, for warehousing, for 
immediate transportation without appraisement, or under any other 
provision of the Customs laws, unless the Board has specified the form 
of entry to be made.
    (b) For consumption. If the return of zone-restricted merchandise to 
Customs territory for consumption has been ruled by the Board to be in 
the public interest, the entry shall be endorsed by the port director to 
show the authority under which it was made, and that the merchandise is 
subject to the provisions of Chapter 98, Subchapter I, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202).
    (c) For warehousing. Zone-restricted merchandise may be transferred 
from a zone to a Customs bonded warehouse for storage pending 
exportation. The Customs Form 7501 shall be endorsed by the port 
director to show that the merchandise may not be withdrawn for 
consumption. In the case of zone-restricted merchandise transported in 
bond to another port for warehousing and exportation, Customs Form 7512 
shall be endorsed by the port director to show that the merchandise is 
foreign trade zone merchandise in zone-restricted status, which shall be 
entered for warehouse with proper endorsement on Customs Form 7501, and 
which may not be withdrawn for consumption. Zone-restricted merchandise 
transferred from a zone to a Customs bonded warehouse may not be 
manipulated, except for packing or unpacking incidental to exportation.
    (d) For other purposes. Upon acceptance of an entry or withdrawal 
for zone-restricted merchandise for any purpose other than that 
described in a Board order, the entry shall be endorsed by the person 
making entry to show that actual exportation of the merchandise is 
required by the fourth proviso to section 3 of the Act, as amended, or 
the entry endorsed to require delivery to a qualified vessel or 
aircraft, under section 309 or 317, Tariff Act of 1930, as amended (19 
U.S.C. 1309, 1317).

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988]



Sec. 146.71  Release and removal of merchandise from zone.

    (a) General. Except as provided for in Sec. 146.43, no merchandise 
will be transferred from a zone without a Customs permit on the 
appropriate entry or withdrawal form or other document as required in 
this part. This port director may authorize transfer from a zone without 
physical supervision or examination by a Customs officer. Upon issuance 
of a permit, the port director will authorize delivery of the 
merchandise only to the operator, who then may release the merchandise 
to the importer or carrier.

[[Page 115]]

    (b) Liability for discrepancy. When a transfer is not physically 
supervised by a Customs officer, the operator will be relieved of 
responsibility only for the merchandise in a zone in the condition and 
quantity as shown on the entry, withdrawal, or other appropriate form. 
The operator will be relieved of responsibility only if it receives the 
signed receipt on the document of the importer or the carrier named in 
that document. The responsibility of the operator may be adjusted by any 
discrepancy report made jointly by the operator and the bonded cartman, 
lighterman, or carrier, or the importer, and signed by the above or an 
authorized representative within 15 days after transfer of the 
merchandise from the zone. Any adjustment must be noted on the permit 
copy of the entry, withdrawal, or other appropriate form or document. A 
copy of any joint report of discrepancy must be submitted to the port 
director within 10 working days of signing by the parties.
    (c) Time limit. Except in the case of articles for use in a zone, 
merchandise for which a Customs permit for transfer to Customs territory 
has been issued must be physically removed from the zone within 5 
working days of issuance of that permit. The port director, upon request 
of the operator, may extend that period for good cause. Merchandise 
awaiting removal within the required time limit will not be further 
manipulated or manufactured in the zone, but will be segregated or 
otherwise identified by the operator as merchandise that has been 
constructively transferred to Customs territory.
    (d) Retention or return of merchandise to zone for consumption. (1) 
The port director shall cancel any entry for consumption where: (i) The 
merchandise is not removed from the zone within the period specified in 
paragraph (c) of this section, or (ii) the merchandise was removed from 
the zone but did not enter the commerce of the U.S. in Customs territory 
and was subsequently readmitted to a zone in domestic status. If the 
port director has reason to believe any new entry would be cancelled 
under the provisions of this paragraph, he may reject the entry or 
demand a written stipulation, as a condition of entry acceptance, that 
the merchandise will not be returned to a zone in domestic status. 
Merchandise covered by an entry which has been cancelled under this 
paragraph shall be restored to its last foreign status.
    (2) A component of merchandise which has been entered, but not 
physically removed from a zone, shall be restored to its last zone 
status, provided the port director determines that the component was 
included in the entry through clerical error, mistake of fact, or other 
inadvertence not amounting to an error in the construction of the law. 
Such an error, including that in appraisement of any entry or 
liquidation due to the above circumstances, may be corrected pursuant to 
section 520(c)(1), Tariff Act of 1930, as amended (19 U.S.C. 
1520(c)(1)), in accordance with the procedures described in part 173 of 
this chapter. If the port director decides there has been no error, 
mistake, or inadvertence, or that the information was not timely 
provided, the component will be considered as an overage and subject to 
the provisions of Sec. 146.53(d).
    (3) When merchandise which has been entered for consumption is 
subsequently returned to a zone for a reason other than that specified 
in paragraph (d)(1) of this section, it shall be admitted in domestic 
status.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986; 51 FR 11012, Apr. 1, 1986]



               Subpart G_Penalties; Suspension; Revocation



Sec. 146.81  Penalties.

    (a) Amount. Upon violation of the Act, or any regulation issued 
under the Act, by the grantee, or any officer, agent, operator or 
employee thereof, the person responsible for or permitting the violation 
shall be subject to a fine of not more than $1,000. Each day during 
which a violation continues will constitute a separate offense. 
Liquidated damages, where applicable, will be imposed in addition to the 
fine (19 U.S.C. 81s).
    (b) Review. All fines assessed by the port director under this 
section will be reviewed by the Director, International Trade Compliance 
Division, Headquarters, to determine whether further

[[Page 116]]

action against the grantee or operator, such as suspension or a 
recommendation for revocation of the grant, is warranted.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 91-77, 56 FR 
46115, Sept. 10, 1991]



Sec. 146.82  Suspension.

    (a) For cause. The port director may suspend for cause the activated 
status of a zone or zone site, or the privilege to admit, manufacture, 
manipulate, exhibit, destroy, transfer or remove merchandise at a zone 
or zone site for a period not to exceed 90 days. Upon order of the Board 
the suspension may be continued. If appropriate, the suspension may be 
limited to an individual user or users and not to the zone or zone site 
as a whole, or may be limited to a particular activity of an operator or 
user, such as suspension of the privilege to admit merchandise or the 
privilege to manufacture. An action to suspend will be taken in 
accordance with the procedure in paragraph (b) of this section if:
    (1) The approval of the application to activate the zone was 
obtained through fraud or the misstatement of a material fact;
    (2) The operator neglects or refuses to obey any proper order of a 
Customs officer or any Customs order, rule, or regulation relating to 
the operation or administration of a zone;
    (3) The operator, or any officer of a corporation which has been 
granted the right to operate a zone, is convicted of or has commited 
acts which would constitute a felony, or misdemeanor involving theft, 
smuggling, or a theft-connected crime. Any change in the employment 
status of the corporate officer (e.g., discharge, resignation, demotion, 
or promotion) prior to conviction of a felony or prior to conviction of 
a misdemeanor involving theft, smuggling, or a theft-connected crime, 
resulting from acts committed while a corporate officer, will not 
preclude application of this provision;
    (4) The operator fails to furnish a current list of names, 
addresses, or other information as required by Sec. 146.7;
    (5) The operator does not provide a secure facility or properly 
safeguard merchandise within a zone;
    (6) [Reserved]
    (7) The operator, or any officer, agent, or employee of the 
operator, discloses to an unauthorized person proprietary information 
contained on a Customs form or in the inventory control and 
recordkeeping system; or
    (8) The inventory control and recordkeeping system is impaired to 
the point where the identity of merchandise in zone status has been lost 
and cannot be reestablished without a suspension of zone operations.
    (b) Procedure--(1) Notice. The port director may, at any time, serve 
notice, in writing, upon an operator to show cause why its right to 
continue operation of a zone should not be suspended or why an 
individual user or activities of an individual user should not be 
suspended, as provided for in paragraph (a) of this section. The notice 
will advise the operator of the grounds for the proposed action and will 
afford the operator an opportunity to respond, in writing, within 15 
days after receipt of the notice. Thereafter, the port director shall 
consider the allegations and any response made by the operator and issue 
a decision, unless the operator requests a hearing in the matter.
    (2) Hearing. If the operator requests a hearing, it will be held 
before a hearing officer designated by the Commissioner of Customs or 
his designee within 30 days following the operator's request. The 
operator may be represented by counsel at the hearing, and any evidence 
and testimony of witnesses in the proceeding, including substantiation 
of the allegations and the response thereto, will be presented. The 
right of cross-examination will be available to both parties. A 
stenographic record of the proceeding will be made and a copy will be 
delivered to the operator. At the conclusion of the hearing, the hearing 
officer shall transmit promptly all papers and the stenographic record 
of the hearing to the Assistant Commissioner, Office of Field 
Operations, or designee, together with a recommendation for final 
action.
    (3) Decision of Assistant Commissioner. Within 10 calendar days 
after delivery to the operator of a copy of the stenographic record of 
the hearing, the operator may submit to the Assistant Commissioner, 
Office of Field Operations,

[[Page 117]]

or designee, in writing any additional views or arguments. The Assistant 
Commissioner, Office of Field Operations, or designee, shall then render 
a written decision stating his reasons therefor. That decision will be 
served on the operator and will be considered the final Customs 
administrative action in the case.
    (4) Grantee. If the grantee of the zone is not the operator, a copy 
of the notice to show cause will be served upon the grantee. The 
grantee, as a party-in-interest, may join the operator in any 
proceedings under this section.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 88-63, 53 FR 
40220, Oct. 14, 1988; T.D. 95-99, 60 FR 62733, Dec. 7, 1995]



Sec. 146.83  Revocation of zone grant.

    (a) Recommendation of port director. The port director may at any 
time recommend to the Board that the privilege of establishing, 
operating, and maintaining a zone or subzone under Customs jurisdiction 
be revoked for willful and repeated violations of the Act (19 U.S.C. 
81r). If the port director believes that a substantial question of law 
exists as to whether willful and repeated violations of the Act have 
occurred, that officer may request internal advice under the provisions 
of part 177 of this chapter from the Director, International Trade 
Compliance Division, Headquarters. A recommendation to the Board that a 
zone or subzone grant be revoked does not preclude, and may be in 
addition to, any liquidated damages, penalty, or suspension for cause.
    (b) Decision of the Board. The procedure for revocation of a grant, 
the decision of the Board, and appeal is covered by the provisions of 
the Act and title 15, chapter IV, part 400, Code of Federal Regulations.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 91-77, 56 FR 
46115, Sept. 10, 1991; T.D. 99-27, 64 FR 13676, Mar. 22, 1999]



        Subpart H_Petroleum Refineries in Foreign-Trade Subzones

    Source: T.D. 95-35, 60 FR 20632, Apr. 27, 1995, unless otherwise 
noted.



Sec. 146.91  Applicability.

    This subpart applies only to a petroleum refinery (as defined 
herein) engaged in refining petroleum in a foreign-trade zone or 
subzone. Further, the provisions relating to zones generally, which are 
set forth elsewhere in this part, including documentation and document 
retention requirements, and entry procedures, such as weekly entry, 
shall apply as well to a refinery subzone, insofar as applicable to and 
not inconsistent with the specific provisions of this subpart. It does 
not cover zone-to-zone transfers in which the fact of removal from one 
zone is ignored.



Sec. 146.92  Definitions.

    (a) Attribution. ``Attribution'' means the association of a final 
product with its source material.
    (b) Feedstocks. ``Feedstocks'' means crude petroleum or intermediate 
product that is used in a petroleum refinery to make a final product.
    (c) Feedstock factor. ``Feedstock factor'' means the relative value 
of final products utilizing T.D. 66-16 (see Sec. 146.92(h)), and which 
takes into account any volumetric loss or gain.
    (d) Final product. ``Final product'' means any petroleum product 
that is produced in a refinery subzone and thereafter removed therefrom 
or consumed within the zone.
    (e) Manufacturing period. ``Manufacturing period'' means a period 
selected by the refiner which must be no more than a calendar month 
basis, for which attribution to a source feedstock must be made for 
every final product made, consumed in, or removed from the refinery 
subzone.
    (f) Petroleum refinery. ``Petroleum refinery'' means a facility that 
refines a feedstock listed on the top line of the tables set forth in 
T.D. 66-16 into a product listed in the left column of the tables set 
forth in T.D. 66-16.
    (g) Price of product. ``Price of product'' means the average per 
unit market value of each final product for a given manufacturing period 
or the published standard product value if updated each month.
    (h) Producibility. ``Producibility'' is a method of attributing 
products to feedstocks for petroleum manufacturing in

[[Page 118]]

accordance with the Industry Standards of Potential Production set forth 
in T.D. 66-16.
    (i) Relative value. ``Relative value'' means a value assigned to 
each final product attributed to the separation from a privileged 
foreign feedstock based on the ratio of the final product's value 
compared to the privileged foreign feedstock's duty.
    (j) Time of Separation. ``Time of separation'' means the 
manufacturing period in which a privileged foreign status feedstock is 
deemed to have been separated into two or more final products.
    (k) Weighted Average. ``Weighted average'' means the relative value 
of merchandise, which is determined by dividing the total value of 
shipments in a given period by the total quantity shipped in the same 
given period. See example in section VI of the appendix to this part.



Sec. 146.93  Inventory control and recordkeeping system.

    (a) Attribution. All final products removed from or consumed within 
a petroleum refinery subzone must be attributed to feedstock admitted 
into said petroleum refinery subzone in the current or prior 
manufacturing period. Attribution must be based on records maintained by 
the operator. Attribution may be made by applying one of the authorized 
methods set forth in this section. Records must be maintained on a 
weight or volume basis.
    (1) Producibility. The producibility method of attribution requires 
that records be kept to attribute final products to feedstocks which are 
eligible for attribution as set forth in this section during the current 
or prior manufacturing period.
    (2) Actual production records. An operator may use its actual 
production records as provided for under Sec. 146.95(b) of this 
subpart.
    (3) Other inventory method. An operator may use the FIFO (first-in, 
first-out) method of accounting (see Sec. 191.22(c) of this chapter). 
The use of this method is illustrated in the appendix to this part.
    (b) Feedstock eligible for attribution. Only a feedstock that has 
been admitted into the refinery subzone is eligible for attribution. For 
a given manufacturing period, the quantity of feedstock eligible for 
attribution may be computed as beginning inventory, plus receipts less 
shipments of feedstock out of the subzone, and less ending inventory.
    (c) Consumption or removal of final product. Each final product that 
is consumed in or removed from a refinery subzone must be attributed to 
a feedstock eligible for attribution during the current or a prior 
manufacturing period. Each final product attributed as being produced 
from the separation of a privileged foreign status feedstock must be 
assigned the proper relative value as set forth in paragraph (d) of this 
section.
    (d) Relative value. A relative value calculation is required when 
two or more final products are produced as the result of the separation 
of privileged foreign status feedstock. Ad valorem and compound rates of 
duty must be converted to specific rates of duty in order to make a 
relative value calculation.
    (e) Privileged status after admission. Nonprivileged status 
feedstock is eligible for privileged status only if the request shows to 
the satisfaction of the Customs Service that there was no manipulation 
or manufacture of the feedstock to change its tariff classification 
before the request is granted. The absence of such manipulation or 
manufacture can be shown by demonstrating that the feedstock was placed 
in an empty tank, in a tank that contained only feedstock with the same 
nominal specifications or providing a sample which shows there was no 
change in tariff status. The existence of negligible amounts of other 
feedstocks may be disregarded only in accordance with Sec. 146.95(b). A 
request for after-admission privileged foreign status shall be denied 
unless the feedstock's tank records from admission to the time that the 
request is made accompany the request. A refiner who makes such a 
request shall not put any other feedstock having different nominal 
specifications into the tank until the request for privileged status is 
granted.

[[Page 119]]

The Customs Service will deny or revoke a post-admission request if a 
refiner fails to retain the integrity of the feedstock in the tank.
    (f) Consistent use required. The operator must use the selected 
method, measurement (weight or volume), and the price of product 
consistently (see Sec. 146.92(g) of this subpart and paragraph (a) of 
this section).



Sec. 146.94  Records concerning establishment of manufacturing period.

    (a) Feedstock admitted into the refinery subzone. The operator must 
maintain appropriate inventory records during the manufacturing period 
to substantiate the feedstock(s) eligible for attribution under Sec. 
146.93(b) and in accordance with the operator's selected attribution 
method.
    (b) Final product consumed in or removed from subzone. The operator 
must record the date and amount of each final product consumed in, or 
removed from the subzone.
    (c) Consumption or removal. The consumption or removal of a final 
product during a week may be considered to have occurred on the last day 
of that week for purposes of attribution and relative value calculation 
instead of the actual day on which the removal or consumption occurred, 
unless the refiner elects to attribute using the FIFO method (see 
section II of the appendix to this part).
    (d) Gain or loss. A gain or loss that occurs during a manufacturing 
period must be taken into account in determining the attribution of a 
final product to a feedstock and the relative value calculation of 
privileged foreign feedstocks. Any gain in a final product attributed to 
a non-privileged foreign status feedstock is dutiable if entered for 
consumption unless otherwise exempt from duty.
    (e) Determining gain or loss; acceptable methods--(1) Converting 
volume to weight. Volume measurements may be converted to weight 
measurements using American Petroleum Institute conversion factors to 
account for gain or loss.
    (2) Calculating feedstock factor to account for volume gain or loss. 
A feedstock factor may be calculated by dividing the value per barrel of 
production per product category by the quotient of the total value of 
production divided by all feedstock consumed. This factor would be 
applied to a finished product that has been attributed to a feedstock to 
account for volume gain.
    (3) Calculating volume difference. Volume difference may be 
determined by comparing the amount of feedstocks introduced for a given 
period with the amount of final products produced during the period, and 
then assigning the volume change to each final product proportionately.



Sec. 146.95  Methods of attribution.

    (a) Producibility--(1) General. A subzone operator must attribute 
the source of each final product. The operator is limited in this regard 
to feedstocks which were eligible for attribution during the current or 
prior manufacturing period. Attribution of final products is allowable 
to the extent that the quantity of such products could have been 
produced from such feedstocks, using the industry standards of potential 
production on a practical operating basis, as published in T.D. 66-16. 
Once attribution is made for a particular product, that attribution is 
binding. Subsequent attributions of feedstock to product must take prior 
attributions into account. Each refiner shall keep records showing each 
attribution.
    (2) Industry standards of potential production. The industry 
standards of potential production on a practical operating basis 
necessary for the producibility attribution method are contained in 
tables published in T.D. 66-16. With these tables, a subzone operator 
may attribute final products consumed in, or removed from, the subzone 
to feedstocks during the current or a prior manufacturing period.
    (3) Attribution to product or feedstock not listed in T.D. 66-16. 
(i) For purposes of attribution, where a final product or a feedstock is 
not listed in T.D. 66-16, the operator must submit a proposed 
attribution schedule, supported by a technical memorandum, to the 
appropriate port director. The port director shall refer the request to 
the Director, Office of Regulatory Audit (``ORA''), who will verify the 
refiner's records

[[Page 120]]

and will coordinate with the Director, Office of Laboratories and 
Scientific Services (``OLSS''). The Director, ORA, shall either approve 
or deny the request. If the request is approved, the Director, ORA, 
shall publish a modification of T.D. 66-16. If an operator elects to 
show attribution on a producibility basis, but fails to keep records on 
that basis, the operator shall use its actual operating records to 
determine attribution and any necessary relative value calculation upon 
the Customs Service demand and subject to verification.
    (ii) An operator may attribute a final product to a feedstock in 
excess of the amount allowed under T.D. 66-16, when authorized by 
Customs, without losing the ability to attribute under T.D. 66-16 for 
all other feedstock-final product combinations. The operator must use 
its actual production records for the requested feedstock-final product 
combination. The operator must agree in writing that it will not, and it 
will not enable any other person, to file a drawback claim under 19 
U.S.C. 1313 inconsistent with those actual production records for that 
feedstock-final product combination. The operator shall file its request 
in accordance with paragraph (a)(3) of this section. The Director, ORA, 
and the Director, OLSS, must determine whether T.D. 66-16 needs to be 
modified and shall publish in the Customs Bulletin each approval granted 
under this paragraph and request public comments with each such 
approval.
    (4) Attribution to privileged foreign feedstock; relative value. If 
a final product is attributed to the separation of a privileged foreign 
feedstock a relative value must be assigned (see section IV of the 
appendix to this part).
    (b) Refinery operating records. An operator may use the actual 
refinery operating records to attribute the feedstocks used to the 
removed or consumed products. Customs shall accept the operator's 
operating conventions to the extent that the operator demonstrates that 
it actually uses these conventions in its refinery operations. Whatever 
conventions are elected by the operator, they must be used consistently 
in order to be acceptable to Customs. Additionally, Customs may use 
these records to test the validity of admissions into the subzone, 
consumption within and removals from the subzone.

    Example If the operator mixes three equal quantities of material in 
a day tank and treats that product as a three-part mixture in its 
production unit, Customs will accept the resulting product as composed 
of the three materials. If, in the alternative, the operator assumes 
that the three products do not mix and treats the first product as being 
composed of the first material put into the day tank, the second product 
as composed of the second material put into the day tank, and the third 
product as being composed of the third material put into the day tank, 
Customs will accept that convention also.



Sec. 146.96  Approval of other recordkeeping systems.

    (a) Approval procedure. An operator must seek prior approval of 
another recordkeeping procedure by submitting the following to the 
Director, Office of Regulatory Audit:
    (1) An explanation of the method describing how attribution will be 
made when a finished product is removed from or consumed in the subzone, 
and how and when the feedstocks will be decremented;
    (2) A mathematical example covering at least two months which shows 
the amounts attributed, all necessary relative value calculations, the 
dates of consumption and removal, and the amounts and dates that the 
transactions are reported to Customs.
    (b) Failure to comply. Requests received that fail to comply with 
paragraph (a) of this section will be returned to the requester with the 
defects noted by the Director, Office of Regulatory Audit.
    (c) Determination by Director. When the Director, Office of 
Regulatory Audit, determines that the recordkeeping procedures provide 
an acceptable basis for verifying the admissions and removals from or 
consumption in a refinery subzone, the Director will issue a written 
approval to the applicant.

[[Page 121]]

   Appendix to Part 146--Guidelines for Determining Producibility and 
                 Relative Values for Oil Refinery Zones

    Where an example is set out in this appendix, the example is for 
purposes of illustrating the application of a provision, and where there 
is any inconsistency between the example and the provision, the 
provision prevails to the extent of the inconsistency. Alternative 
formats are also acceptable so long as they are consistent with the 
provisions of this part.

 I. Attribution Using Producibility Showing Manufacturing Periods From 
             Admission t o Removal Within a Calender Month.

    Volume losses and gains accounted for by weight.

                                  Day 1

    Receipt into the refinery subzone during a 30-day month:

50,000 pounds privileged foreign (PF) class II crude oil.
50,000 pounds PF class III crude oil.
50,000 pounds domestic status class III crude oil.

                                 Day 10

    Removal from the refinery subzone for exportation of 50,000 pounds 
of aviation gasoline.
    The period of manufacture for the aviation gasoline is Day 1 to Day 
10. The refiner must first attribute the designated source of the 
aviation gasoline.
    In order to maximize the duty benefit conferred by the zone 
operation, the refiner chooses to attribute the exported aviation 
gasoline to the privileged foreign status crude oil. Under the tables 
for potential production (T.V. 66-16), class II crude has a 30% 
potential, and class III has a 40% potential. The maximum aviation 
gasoline producible from the class II crude oil is 15,000 pounds (50,000 
x .30). The maximum aviation gasoline producible from the privileged 
foreign status class III crude oil is 20,000 pounds (50,000 x .40). The 
domestic class III crude would also make 20,000 pounds of aviation 
gasoline.
    The refiner could attribute 15,000 pounds of the privileged foreign 
class II crude oil, 20,000 pounds of the privileged foreign class III 
crude oil, and 15,000 pounds of the domestic class III crude oil as the 
source of the 50,000 pounds of the aviation gasoline that was exported; 
35,000 pounds of class II crude oil would be available for further 
production for other than aviation gasoline, 30,000 pounds of privileged 
foreign class III crude oil would be available for further production 
for other than aviation gasoline, and 35,000 pounds of domestic status 
class III crude oil would be available for further production, of which 
up to 5,000 pounds could be attributed to aviation gasoline.

                                 Day 21

    Receipt in the refinery subzone:

50,000 pounds PF status class I crude oil.
50,000 pounds PF status class IV crude oil.

                                 Day 30

    Removal from the refinery subzone:
30,000 pounds of motor gasoline for consumption.
10,000 pounds of jet fuel sold to the US Air Force for use in military 
aircraft.
10,000 pounds of aviation gasoline sold to a U.S. commuter airline for 
domestic flights.
10,000 pounds of kerosene for exportation.

    To the extent that the crude oils that entered production on Day 1 
are attributed as the designated sources for the products removed on Day 
30, the period of manufacture is Day 1 to Day 30. If the refiner chooses 
to attribute the crude oils that were admitted on Day 21 as the 
designated sources of the products removed on Day 30 using the 
production standards published in T.D. 66-16, the manufacturing period 
is Day 21 to Day 30. This choice will be important if a relative value 
calculation on the privileged foreign status crude oil is required, 
because the law requires the value used for computing the relative value 
to be the average per unit value of each product for the manufacturing 
period. Relative value must be calculated if a source feedstock is 
separated into two or more products that are removed from the subzone 
refinery. If the average per unit value for each product differs between 
the manufacturing period from Day 1 to Day 30 and the manufacturing 
period from Day 21 to Day 30, the correct period must be used in the 
calculation.
    In order to minimize duty liability, the refiner would try to 
attribute the production of the exported kerosene and the sale of the 
jet fuel to the US Air Force to the privileged foreign crude oils. For 
the same reason, the refiner would try to attribute the removed motor 
gasoline and the aviation gasoline for the commuter airline to the 
domestic crude oil.
    Accordingly, the refiner chooses to attribute up to 5,000 pounds of 
the domestic status class III crude as the source of the 10,000 pounds 
of aviation gasoline removed from the subzone refinery for the commuter 
airline. Since no other aviation gasoline could have been produced from 
the crude oils that were admitted into the refinery subzone Day 1, the 
refiner must attribute the remainder to the crude oils that entered 
production on Day 21. Again, using the production standards from T.D. 
66-16, the class I crude could produce aviation gasoline in an amount up 
to 10,000 pounds (50,000 x .20). Likewise, the class IV crude oil could

[[Page 122]]

produce aviation gasoline in an amount up to 8,500 pounds (50,000 x 
.17).
    The refiner selects use of the class I crude as the source of the 
aviation gasoline. The refiner could attribute up to 27,300 pounds 
(35,000-5,000 x .91) of the domestic class III crude oil as the source 
of the motor gasoline. This would leave 2,700 pounds of domestic class 
III crude available for further production for other than aviation 
gasoline or motor gasoline. The remaining motor gasoline removed (also 
2,700 pounds) must be attributed to a privileged foreign crude oil. The 
refiner selects the privileged foreign class II crude oil that entered 
production on Day 1 as the source for the remaining 2,700 pounds of 
motor gasoline.
    This would leave 32,300 pounds of privileged foreign class II crude 
oil available for further production, of which no more than 27,400 
pounds could be designated as the source of motor gasoline. The refiner 
attributes the jet fuel that is removed from the refinery subzone for 
the US Air Force for use in military aircraft to the privileged foreign 
class II crude oil. The refiner could attribute up to 20,995 pounds of 
jet fuel from that class II crude oil (32,300 x .65). Designating that 
class II crude oil as the source of the 10,000 pounds of jet fuel leaves 
22,300 pounds of privileged foreign class II crude oil available for 
further production, of which up to 10,995 pounds could be attributed as 
the source of the jet fuel. Because the motor gasoline and the jet fuel, 
under the foregoing attribution, would be considered to have been 
separated from the privileged foreign class II crude oil, a relative 
value calculation would be required.
    The jet fuel is eligible for removal from the subzone free of duty 
by virtue of 19 U.S.C. 1309(a)(1)(A). The refiner could attribute the 
privileged foreign class II crude oil as being the source of the 10,000 
pounds of jet fuel (22,300 x .65). The refiner chooses to attribute the 
privileged foreign class III crude oil as the source of the jet fuel. 
The refiner could attribute to that class III crude oil up to 15,000 
pounds of kerosene (30,000 x .50).

                     II. Attribution on a FIFO Basis

(Accounting for volume losses or gains by the weight method)

                                 Day 1-5

    Transfer, into the Refinery Subzone, from one or more storage tanks 
into process 150 barrels of Privileged Foreign (PF) Class II crude oil, 
equivalent to 50,000 pounds.

                                  Day 6

    Removal from the refinery subzone 119 barrels of residual oils to 
customs territory, equivalent to 40,000 pounds.
    Since the operator uses the FIFO method of attribution, as the 
product is removed from the subzone, or consumed or lost within the 
subzone, attribution must be to the oldest feedstock available for 
attribution. Accordingly, the 40,000 pounds of residual oils will be 
attributed to 40,000 pounds of the PF Class II crude oil from Day 1-5.

                                 Day 10

    Transfer, into the refinery subzone, from one or more storage tanks 
4 barrels of domestic motor gasoline blend stock, equivalent to 1,000 
pounds to motor gasoline blending tank.

                                Day 6-15

    Transfer, into the refinery subzone, from one or more storage tanks 
into process 320 barrels of Domestic Class III crude oil, equivalent to 
100,000 pounds.

                                 Day 16

    Removal from the refinery subzone 14 barrels of asphalt to customs 
territory, equivalent to 5,000 pounds.
    The 5,000 pounds of asphalt will be attributed to 5,000 pounds of PF 
Class II crude oil from Day 1-5.

                                 Day 17

    Removal from the refinery subzone, 324 barrels of motor gasoline to 
customs territory, equivalent to 81,000 pounds.
    The 81,000 pounds of motor gasoline will be attributed to 1,000 
pounds of domestic motor gasoline blend stock from Day 10, to the 
remaining 5,000 pounds of PF Class II crude oil from Day 1-5 and 75,000 
pounds of domestic Class III crude oil from Day 6-15.

                                Day 16-20

    Transfer, into the refinery subzone, from one or more storage tanks 
into process 169 barrels of Privileged Foreign (PF) Class III crude oil, 
equivalent to 50,000 pounds.

                                 Day 22

    Removal from the refinery subzone, 214 barrels of jet fuel for 
exportation, equivalent to 60,000 pounds.
    The 60,000 pounds of jet fuel will be attributed to the remaining 
25,000 pounds of domestic Class III crude oil from Day 6-15 and 35,000 
pounds of PF Class III crude oil from Day 16-20.

                                Day 21-25

    Transfer, into the refinery subzone from one or more storage tanks 
into process, 143 barrels of domestic Class I crude oil, equivalent to 
50,000 pounds.

                Day 30 (End of the Manufacturing Period)

    It is determined that during the manufacturing period just ended, 
that 34 barrels of

[[Page 123]]

fuel, equivalent to 10,000 pounds was consumed, and 5 barrels of oil, 
equivalent to 1,500 pounds was lost in the refining production process 
within the refinery subzone.
    The 10,000 pounds of fuel consumed will be attributed 10,000 pounds 
of PF Class III crude oil from Day 16-20. The 1,500 pounds of oil lost 
in the refining production process will be attributed to 1,500 pounds of 
PF Class III crude oil from Day 16-20. The remaining 3,500 pounds of PF 
Class III crude oil from Day 16-20 will be the first to be attributed 
during the next manufacturing period.

                     III. Relative Value Calculation

    Because privileged foreign feedstocks transferred into process 
during Day 1-5 and Day 16-20 have two or more products attributed to 
them, each feedstock will require a relative value calculation.
    Relative value calculation for UIN Day 1-5, 50,000 pounds, 
equivalent to 150 barrels.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       D Product      E R.V.                  G Dutiable
                                                                  A Lbs       B  BBLS      C $/BBL       value        Factor     F R.V. BBL      BBL
--------------------------------------------------------------------------------------------------------------------------------------------------------
Residual oil.................................................       40,000          119        15.00        1,785        .9047          108          108
Asphalt......................................................        5,000           14        13.00          182        .7840           11           11
Motor gasoline...............................................        5,000           20        26.00          520       1.5682           31           31
                                                              --------------
      Totals.................................................       50,000          153  ...........        2,487  ...........          150          150
--------------------------------------------------------------------------------------------------------------------------------------------------------
A=Pounds Attributed.
B=Equivalent Barrels.
C=Price of Product.
D=BxC.
E=C/(Total of Column D/Attributed Crude BBLS).
Residual Oil RV Factor=15.00/(2,487/150)=.9047.
F=BxE.
G=Dutiable Barrels.
 
Since all products attributed to the 50,000 pounds (150 BBLS) of PF Class II crude entered customs territory duty equals $7.88 (150x.0525).
Feedstock factor calculation for UIN Day 16-20, 46,500 pounds equivalent to 157 barrels.


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Product     Feedstock                  Dutiable
                                                                   Lbs          BBLS        $/BBL        value        factor      R.V. BBL       BBL
--------------------------------------------------------------------------------------------------------------------------------------------------------
Jet Fuel.....................................................       35,000          125        27.00        3,375       1.1030          138            0
Fuel.........................................................       10,000           34        12.00          408       0.4902           17            0
Consumed Process Loss........................................        1,500            5        12.00           60       0.4902            2            0
                                                              --------------
      Totals.................................................       46,500          164  ...........        3,843  ...........          157            0
--------------------------------------------------------------------------------------------------------------------------------------------------------
Since jet fuel was exported, no duty is applicable. Fuel consumed for refinery process was consumed within the subzone premises and did not enter
  customs territory, thus no duty is applicable (assume refinery not barred by duty-free consumption restriction). Likewise, the process loss occurred
  entirely within the subzone. Therefore, no duty is applicable.

IV. Attribution to Privileged Foreign Feedstock; Relative Value; Monthly 
  Manufacturing Period, Weekly Entries, Attribution to a Prior Period; 
            Volume Loss or Gain Shown by Volume Differences.

    An operator who elects to attribute on a monthly basis files the
   following estimated removal of final products for the first week in
                               September:
Jet Fuel (deemed exported on international flights)...........    20,000
Gasoline--Domestic Consumption................................    15,000
Duty-free certified as emergency war material.................    10,000
Petroleum coke exportations...................................    10,000
Distillate for consumption....................................     5,000
Petrochemicals exported.......................................    10,000
                                                               ---------
      Total removals..........................................    70,000
 
Because it does not elect to make attributions for feedstocks that were
  charged to operating units during the same week, the operator
  attributes the estimated removals to final products made during August
  from the following feedstocks:


Class II PF (privileged foreign) crude........................    20,000
Class III PF crude............................................    35,000
Class III D (domestic) crude..................................    20,000
Class III NPF (nonprivileged foreign crude....................    20,000
                                                               ---------
                                                                  95,000
 
During August the operator produced from those feedstocks:


Jet..........................................................     35,000
Gasoline.....................................................     40,000
Petroleum Coke...............................................     10,000

[[Page 124]]

 
Distillate...................................................      5,000
Petrochemicals...............................................     15,000
                                                              ----------
                                                                 105,000
 
There is a gain of 105,000-95,000=10,000
 
Using the tables in T.D. 66-16, the following choices are available for
  attribution:


----------------------------------------------------------------------------------------------------------------
                                                                             Petrolum                   Petro-
                                      Charged        Jet        Gasoline       coke      Distillate    chemical
----------------------------------------------------------------------------------------------------------------
Class II PF Crude.................       20,000       13,000       17,200        4,400       17,200        5,000
Class III PF Crude................       35,000       24,500       31,850       14,000       31,150       10,150
Class III D Crude.................       20,000       14,000       18,200        8,000       17,800        5,800
Class III NPF Crude...............       20,000       14,000       18,200        8,000       17,800        5,800
----------------------------------------------------------------------------------------------------------------
Feedstock factors are calculated:


----------------------------------------------------------------------------------------------------------------
                                                                              Value                   Feedstock
                                                                Barrels      barrels       Value       factors
----------------------------------------------------------------------------------------------------------------
Gasoline....................................................       40,000          $25   $1,000,000        .9117
Jet Fuel....................................................       35,000           23      805,000        .8388
Distillate..................................................        5,000           20      100,000        .7294
Petroleum Coke..............................................       10,000           10      100,000        .3647
Petrochemicals..............................................       15,000           40      600,000       1.4587
                                                             --------------
                                                                  105,000  ...........    2,605,000
                                                             ---------------------------
Gain........................................................      -10,000   $2,605,000  ...........  ...........
                                                             ---------------------------
      Total.................................................   \1\ 95,000       =$27.42 average value p/bbl
----------------------------------------------------------------------------------------------------------------
Using the feedstock factor the refiner makes the following attributions:


 
 
 
Jet Fuel.........................       24,192  (20,291 feedstock
                                                 attributed to Class III
                                                 PF Crude).
                                        10,808  Class III NPF Crude
                                                 (attribution of 9066
                                                 solely for purpose of
                                                 accounting for the
                                                 amount of NPF used).
                                  -------------
                                        35,000
  Gasoline.......................        5,000  (4,559 feedstock
                                                 attributed to Class III
                                                 PF Crude).
                                         5,000  Class III NPF Crude
                                                 (attribution of 4599
                                                 solely for purpose of
                                                 accounting for the
                                                 amount of NPF used).
                                        15,000  (13,676 feedstock
                                                 attributed to Class III
                                                 D Crude).
                                  -------------
Petroleum Coke...................        8,418  (3,070 feedstock
                                                 attributed to Class II
                                                 PF Crude).
                                         1,582  Class III NPF Crude
                                                 (attribution of 577
                                                 solely for purposes of
                                                 accounting for the
                                                 amount of NPF used).
                                  -------------
                                        10,000
Distillate.......................        5,000  (3,647 feedstock
                                                 attributed to Class III
                                                 Domestic).
Petrochemicals...................        3,975  (5,800 feedstock
                                                 attributed to Class III
                                                 NPF Crude).
                                         6,025  (8,789 feedstock
                                                 attributed to Class III
                                                 PF Crude).
                                  -------------
                                        10,000
 

   V. Weekly Entry, Weekly Manufacturing Period, and Relative Values 
Calculated on the Actual Weighted Average Values at the End of the Week.

    On the weekly estimated production CF 3461, the refiner is required 
to provide a pro forma invoice or schedule showing the number of units 
of each type of merchandise to be removed during the week and their zone 
and dutiable values. For example, on CF 3461 the refiner estimates the 
following shipments and relative values for the next week and files this 
on the preceding Friday.

----------------------------------------------------------------------------------------------------------------
                                                                   PF shipments    Value/barrel
                         Product week 1                               (MBBLS)        (platts)       Total value
----------------------------------------------------------------------------------------------------------------
Motor Gasoline..................................................          20,000             $35        $700,000
Total Alkylate..................................................          25,000              35         875,000
Heavy Reformate.................................................          60,000              35       2,100,000
Reformer Feed...................................................         110,000              35       3,850,000
Raffinates......................................................         200,000              35       7,000,000

[[Page 125]]

 
Jet Fuel........................................................         200,000              35       7,000,000
                                                                 ----------------                ---------------
      Total.....................................................         615,000  ..............     $21,525,000
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,000@ $105=$64,575 (estimated duties)
During that week the refiner actually removes the following products and reports those on the CF 7501 filed
  within 10 business days after the CF 3461 is filed. Column 3 is the actual ``weighted average'' value for the
  manufacturing period, therefore, no reconciliation is necessary.


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/                      5  Relative    6  Feedstock
                       1  Product                            Shipments      barrel (wt.   4  Total value   value factor      distribu.    7  Liq. duties
                                                              (mbbls)          avg.)          (2)x(3)         (3)/(8)         (5)x(2)      (6)x(10) (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 1:
    Motor Gasoline......................................          19,977          $35.70        $713,179        1.104545          22,065          $2,317
    Total Alkylate......................................          22,907           42.50         973,548        1.314935          30,121           3,163
    Heavy Reformate.....................................          58,164           31.42       1,827,513         .972123          56,542           5,937
    Reformer Feed.......................................         100,279           31.42       3,150,766         .972123          97,484          10,235
    Raffinates..........................................         170,293           29.55       5,032,158         .914266         155,693          16,348
    Jet Fuel............................................         168,433           30.04       5,059,727         .929426         156,546          16,437
                                                         -----------------
      Total.............................................         540,053  ..............      16,756,891  ..............         518,451          54,437
                                                          ..............  ..............  ..............  ..............             (9)            (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 518,451x$.105 = $54,437
Volumetric Gain 21,602
Avg. Value/Barrel Crude Consumed=$16,756,891/518,451=$32.321 (8)
This example shows volumetric gain of 21,602 mbbls. However, in that PF was requested, liquidated duties are only on actual feedstock (class III crude)
  used in the refining process. (518,451 @ $.105=$54,437).

  VI. Weekly Entry, Monthly Manufacturing Period, and Relative Values 
   Calculated on the Actual Weighted Average Values at the End of the 
                                 Month.

    For example, on the CF 3461 the refiner estimates the following 
shipments and relative values for the next week and files this on the 
preceding Friday.

----------------------------------------------------------------------------------------------------------------
                                                                                     3 Value/
                            1 Product                             2 PF shipments      barrel       4 Total value
                                                                      (mbbls)        (platts)
----------------------------------------------------------------------------------------------------------------
Week 1:
    Motor Gasoline..............................................          20,000             $35        $700,000
    Total Alkylate..............................................          25,000              35         875,000
    Heavy Reformate.............................................          60,000              35       2,100,000
    Reformer Feed...............................................         110,000              35       3,850,000
    Raffinates..................................................         200,000              35       7,000,000
    Jet Fuel....................................................         200,000              35       7,000,000
                                                                 ----------------                ---------------
      Total.....................................................         615,000  ..............      21,525,000
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,000 @ $.105=$64,575 (estimated duties)
 
During the week the refiner actually removes the following products and reports those on the CF 7501 filed
  within 10 business days after the CF 3461 is filed. The reported relative values may be an estimate based on
  Platts, prior period actual prices, or the refiner's transfer prices. For this example, the estimates are
  based on the refiner's actual transfer prices. Listed below are the data to be shown on the weekly CF 7501s
  with actual quantities shipped and estimated values for weeks 1-5.


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             3 Value/                       5 Relative      6 Feedstock
                        1 Product                         2 PF shipments      barrel       4 Total value   value factor      distrib.      7 Liq. duties
                                                              (mbbls)       (estimates)       (2)x(3)         (3)/(8)         (5)x(2)      (6)x(10) (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 1:
    Motor Gasoline......................................          19,977          $35.70        $713,179        1.104545          22,065          $2,317
    Total Alkylate......................................          22,907           42.50         973,548        1.314935          30,121           3,163
    Heavy Reformate.....................................          58,164           31.42       1,827,513         .972123          56,542           5,937
    Reformer Feed.......................................         100,279           31.42       3,150,766         .972123          97,484          10,235
    Raffinates..........................................         170,293           29.55       5,032,158         .914266         155,693          16,348
    Jet Fuel............................................         168,433           30.04       5,059,727         .929426         156,546          16,437
                                                         -----------------
      Total.............................................         540,053  ..............      16,756,891  ..............         518,451         $54,437
                                                          ..............  ..............  ..............  ..............             (9)            (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 518,451x$.105=$54,437
Volumetric Gain 21,602

[[Page 126]]

 
Avg. Value/Barrel Crude Consumed=$16,756,891/518,451=$32.321 (8)


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3 Value/
                        1 Product                            shipments        barrel      4 Total  value    5 Relative      6 Feedstock   7 Liq.  duties
                                                              (mbbls)       (estimated)                    value  factor     distrib.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 2:
    Motor Gasoline......................................          20,651          $36.90        $762,022        1.145429          23,654          $2,484
    Total Alkylate......................................          23,435           44.25       1,036,999        1.373584          32,190           3,380
    Heavy Reformate.....................................          59,819           30.35       1,815,507         .942108          56,358           5,918
    Reformer Feed.......................................         101,167           30.10       3,045,127         .934347          94,526           9,925
    Raffinates..........................................         172,317           29.30       5,048,888         .909514         156,726          16,456
    Jet fuel............................................         165,291           30.70       5,074,434         .952972         157,519          16,539
                                                         -----------------
      Total.............................................         542,680  ..............     $16,782,977  ..............         520,973         $54,702
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 520,973x$.105 = $54,702
Volumetric Gain 21,707
Avg. Value/Barrel Crude Consumed = $32.215


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3 Value/
                        1 Product                            shipments        barrel      4 Total  value    5 Relative      6 Feedstock   7 Liq.  duties
                                                              (mbbls)       (estimated)                    value  factor     distrib.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 3:
    Motor Gasoline......................................          18,689          $34.90        $652,246        1.091819          20,405          $2,142
    Total Alkylate......................................          21,511           40.25         865,818        1.259190          27,087           2,844
    Heavy Reformate.....................................          57,371           30.90       1,772,764         .966682          55,460           5,823
    Reformer Feed.......................................          99,707           30.90       3,080,946         .966682          96,386          10,121
    Raffinates..........................................         168,112           29.65       4,984,521         .927577         155,938          16,374
    Jet Fuel............................................         172,092           29.85       5,136,946         .933834         160,707          16,874
                                                         -----------------
      Total.............................................         537,482  ..............     $16,493,241  ..............         515,983         $54,178
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 515,983 x $.105 = $54,178
Volumetric Gain 21,499
Avg. Value/Barrel Crude Consumed = $31.965


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3 Value/
                        1 Product                            shipments        barrel      4 Total  value    5 Relative      6 Feedstock   7 Liq.  duties
                                                              (mbbls)       (estimated)                    value  factor     distrib.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 4:
    Motor Gasoline......................................          21,905          $32.85        $719,579        1.027237          22,502          $2,363
    Total Alkylate......................................          22,552           38.75         873,890        1.211733          27,327           2,869
    Heavy Reformate.....................................          58,116           29.60       1,720,234        0.925607          53,791           5,648
    Reformer Feed.......................................         101,058           29.40       2,971,105        0.919353          92,908           9,755
    Raffinates..........................................         169,823           30.15       5,120,163        0.942806         160,110          16,812
    Jet Fuel............................................         171,493           31.05       5,324,858        0.970949         166,511          17,484
                                                         -----------------
      Total.............................................         544,947  ..............     $16,729,829  ..............         523,149         $54,931
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 523,149 x $.105 = $54,931
Gain 21,798
Avg. Value/Barrel Crude Consumed = $31.979


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3 Value/
                        1 Product                            shipments        barrel      4 Total  value    5 Relative      6 Feedstock   7 Liq.  duties
                                                              (mbbls)       (estimated)                    value  factor     distrib.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 5:
    Motor Gasoline......................................           8,990          $37.25        $334,878        1.136260          10,215          $1,073
    Total Alkylate......................................           9,984           45.10         450,278        1.375713          13,735           1,442
    Heavy Reformate.....................................          25,351           31.50         798,557        0.960864          24,360           2,558
    Reformer Feed.......................................          43,492           31.35       1,363,474        0.956288          41,592           4,367
    Raffinates..........................................          75,172           29.95       2,251,401        0.913583          68,677           7,211
    Jet fuel............................................          75,795           30.56       2,316,295        0.932190          70,654           7,418
                                                         -----------------
      Total.............................................         238,784  ..............      $7,514,883  ..............         229,233         $24,069
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed 229,233 x $.105 = $24,069
Gain 9,551
Avg. Value/Barrel Crude Consumed = $32.783
As provided in the regulations, the refiner files an amended CF 7501 for each week based on the refiner's actual weighted average values for the month,
  as shown below.


[[Page 127]]


------------------------------------------------------------------------
                                                                Value/
                          Product                               barrel
                                                               (MBBLS)
------------------------------------------------------------------------
Month End:
    Motor Gasoline.........................................       $35.27
    Total Alkylate.........................................        41.84
    Heavy Reformate........................................        30.66
    Reformer Feed..........................................        30.54
    Raffinates.............................................        29.69
    Jet Fuel...............................................        30.42
------------------------------------------------------------------------


                                        Reconciliation of Week 1 Using Month's End Actual Weighted Average Values
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            7  Amended
                                                               2  PF         3  Value/       4  Total       5  Relative    6  Feedstock      wt. avg.
                       1  Product                            shipments     barrel  (wt.   value  (2)x(3)   value  factor      distri.         duties
                                                              (mbbls)      avg.)  actual                      (3)/(8)         (5)x(2)      (6)x(10)  (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor Gasoline..........................................          19,977          $35.27        $704,589        1.095716          21,889          $2,298
Total Alkylate..........................................          22,907           41.84         958,429        1.299823          29,775           3,126
Heavy Reformate.........................................          58,164           30.66       1,783,308         .952499          55,401           5,817
Reformer Feed...........................................         100,279           30.54       3,062,521         .948771          95,141           9,990
Raffinates..............................................         170,293           29.69       5,055,999         .922365         157,072          16,493
Jet Fuel................................................         168,433           30.42       5,123,732         .945043         159,176          16,713
                                                         -----------------
    Total...............................................         540,053  ..............     $16,688,578  ..............         518,454          54,437
                                                          ..............  ..............  ..............  ..............             (9)            (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Consumed = 518,454 x $.105 = $54,437
Volumetric Gain 21,599
Avg.Value/Bbl Crude Consumed = $16,688,578 / 518,454 = $32.189 (8)
Note: No change in amended total duties, because duty is computed on total quantity of class III crude used. The difference is amongst the various
  products, i.e., estimated weekly CF 7501 duties paid for Motor Gasoline was $2,317, while the reconciled amount as shown above is $2,298. Additional
  duties owed or refunds due would depend on the reconciliation of the weekly entry as an entirety.

    VII. Weekly entry, monthly manufacturing period, relative values 
   calculated on prior manufacturing period's actual weighted average 
        values. The prior period (PP) values are set forth below:

------------------------------------------------------------------------
                                                           Value/Barrel
                         Product                            (wt. avg.)
------------------------------------------------------------------------
Motor Gasoline..........................................    Sec. 35.28
Total Alkylate..........................................           41.90
Heavy Reformate.........................................           31.78
Reformer Feed...........................................           30.02
Raffinates..............................................           31.10
Jet Fuel................................................           28.80
------------------------------------------------------------------------
Thereafter, the information provided or both the CF 3461 and CF 7501
  filed for each weekly entry with respect to relative values would
  remain the same. The only estimated amount would be the quantity to be
  removed on the CF 3461 as shown below. On the CF 3461 the refiner
  estimates the following shipments and uses a prior manufacturing
  period's actual weighted average values.


----------------------------------------------------------------------------------------------------------------
                                                                       2  PF         3  Value/
                           1  Product                                shipments     barrel  (PP)      4  Total
                                                                      (mbbls)       (wt. avg.)         value
----------------------------------------------------------------------------------------------------------------
Week 1
    Motor Gasoline..............................................          20,000          $35.28        $705,600
    Total Alkylate..............................................          25,000           41.90       1,047,500
    Heavy Reformate.............................................          60,000           31.78       1,906,800
    Reformer Feed...............................................         110,000           30.02       3,302,200
    Raffinates..................................................         200,000           31.10       6,220,000
    Jet Fuel....................................................         200,000           28.80       5,760,000
                                                                 -----------------
      Total.....................................................         615,000  ..............      18,942,100
----------------------------------------------------------------------------------------------------------------
Attributed Feedstock--Class III Crude: 615,000 @ $.105 = $64,575 (estimated duties)
 
On the CF 7501, the refiner reports the following shipments and uses a prior manufacturing period's actual
  average values.


[[Page 128]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/                      5  Relative    6  Feedstock       7  Liq.
                       1  Product                            shipments     barrel  (PP)      4  Total      value  factor      distri.         duties
                                                              (mbbls)       (wt. avg.)    value  (2)x(3)      (3)/(8)         (5)x(2)      (6)x(10)  (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 1:
    Motor Gasoline......................................          19,977          $35.28        $704,789        1.097219          21,919          $2,902
    Total Alkylate......................................          22,907           41.90         959,803        1.303104          29,850           3,134
    Heavy Reformate.....................................          58,164           31.78       1,848,452         .988368          57,486           6,036
    Reformer Feed.......................................         100,279           30.02       3,010,376         .933632          93,623           9,830
    Raffinates..........................................         170,293           31.10       5,296,112         .967220         164,710          17,295
    Jet Fuel............................................         168,433           28.80       4,850,870         .895689         150,863          15,840
                                                         -----------------
      Total.............................................         540,053  ..............     $16,670,402  ..............         518,451         $54,437
                                                          ..............  ..............  ..............  ..............             (9)            (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 518,451 x $.105 = $54,437
Volumetric Gain 21,602
Avg. Value/Barrel Crude Used = $16,670,402 / 518,451 = $32.154 (8)


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/
                       1  Product                            shipments     barrel  (PP)      4  Total       5  Relative    6  Feedstock       7  Liq.
                                                              (mbbls)       (wt. avg.)         value       value  factor      distri.         duties
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 2:
    Motor Gasoline......................................          20,651          $35.28        $728,567        1.096128          22,636          $2,377
    Total Alkylate......................................          23,435           41.90         981,926        1.301808          30,508           3,203
    Heavy Reformate.....................................          59,819           31.78       1,901,048         .987386          59,064           6,202
    Reformer Feed.......................................         101,167           30.02       3,037,033         .932704          94,359           9,908
    Raffinates..........................................         172,317           31.10       5,359,059         .966259         166,503          17,483
    Jet Fuel............................................         165,291           28.80       4,760,381         .894799         147,903          15,529
                                                         -----------------
      Total.............................................         542,680  ..............      16,768,014  ..............         520,973          54,702
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 520,973x$.105=$54,702
Volumetric Gain 21,707
Avg. Value/Barrel Crude Used=$32.186


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/
                       1  Product                            shipments     barrel  (PP)      4  Total       5  Relative    6  Feedstock   7  Liq. duties
                                                              (mbbls)       (wt. avg.)         value       value  factor      distri.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 3:
    Motor Gasoline......................................          18,689          $35.28        $659,348        1.099168          20,542          $2,157
    Total Alkylate......................................          21,511           41.90         901,311        1.305418          28,081           2,948
    Heavy Reformate.....................................          57,371           31.78       1,823,250         .990124          56,803           5,964
    Reformer Feed.......................................          99,707           30.02       2,993,204         .935290          93,254           9,792
    Raffinates..........................................         168,112           31.10       5,228,283         .968938         162,889          17,103
    Jet Fuel............................................         172,092           28.80       4,956,250         .897280         154,414          16,214
                                                         -----------------
      Total.............................................         537,482  ..............      16,561,646  ..............         515,983          54,178
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 515,983x$.105=$54,178
Volumetric Gain 21,499
Avg. Value/Barrel Crude Used=$32.097


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/
                       1  Product                            shipments     barrel  (PP)      4  Total       5  Relative    6  Feedstock       7  Liq.
                                                              (mbbls)       (wt. avg.)         value       value  factor      distri.         duties
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 4:
    Motor Gasoline......................................          21,905          $35.28        $772,808        1.097390          24,038          $2,524
    Total Alkylate......................................          22,552           41.90         944,929        1.303306          29,391           3,086
    Heavy Reformate.....................................          58,116           31.78       1,846,926         .988522          57,447           6,032
    Reformer Feed.......................................         101,058           30.02       3,033,761         .933777          94,365           9,908
    Raffinates..........................................         169,823           31.10       5,281,495         .967371         164,281          17,250
    Jet Fuel............................................         171,493           28.80       4,938,998         .895829         153,627          16,131
                                                         -----------------
      Total.............................................         544,947  ..............      16,818,917  ..............         523,149          54,931
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 523,149x$.105=$54,931
Volumetric Gain 21,798
Avg. Value/Barrel Crude Used=$32.149


[[Page 129]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/
                       1  Product                            shipments     barrel  (PP)      4  Total       5  Relative    6  Feedstock       7  Liq.
                                                              (mbbls)       (wt. avg.)         value       value  factor      distri.         duties
--------------------------------------------------------------------------------------------------------------------------------------------------------
Week 5:
    Motor Gasoline......................................           8,990          $35.28        $317,167        1.097698           9,868          $1,036
    Total Alkylate......................................           9,984           41.90         418,330        1.303671          13,016           1,367
    Heavy Reformate.....................................          25,351           31.78         805,655         .988799          25,067           2,632
    Reformer Feed.......................................          43,492           30.02       1,305,630         .934039          40,623           4,265
    Raffinates..........................................          75,172           31.10       2,337,849         .967642          72,740           7,638
    Jet Fuel............................................          75,795           28.80       2,182,896         .896080          67,919           7,131
                                                         -----------------
      Total.............................................         238,784  ..............       7,367,527  ..............         229,233          24,069
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 229,233x$.105=$24,069
Volumetric Gain 9,551
Avg. Value/Barrel Crude Used=$32.14
At the end of the month, the refiner must calculate its actual weighted average values for use in the subsequent period.


                                               Reconciliation of Relative Value for the Subsequent Period
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               2  PF         3  Value/                      5  Relative                       7  Liq.
                       1  Product                            shipments     barrel  (PP)      4  Total      value  factor   6  Feedstock       duties
                                                              (mbbls)       (wt. avg.)     value  (2x3)       (3)/(8)     distri.  (5x2)   (6x(10)  (9)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Month End:
    Motor Gasoline......................................          90,212          $35.27      $3,181,777        1.095682          98,844         $10,379
    Total Alkylate......................................         100,389           41.84       4,200,276        1.299783         130,484          13,701
    Heavy Reformate.....................................         258,821           30.66       7,935,452         .952470         246,519          25,885
    Reformer Feed.......................................         445,703           30.54      13,611,770         .948742         422,857          44,400
    Raffinates..........................................         755,717           29.69      22,437,238         .922336         697,025          73,188
    Jet Fuel............................................         753,104           30.42      22,909,424         .945014         711,694          74,726
                                                         -----------------
      Total.............................................       2,403,946  ..............      74,275,937  ..............       2,307,423         242,279
                                                          ..............  ..............  ..............  ..............             (9)            (10)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Class III Crude Used 2,307,423x$.105=$242,279
Volumetric Gain 96,523
Avg. Value/Barrel Crude Used=$74,275,937/2,307,423=$32.19 (8)
Note: Actual monthly reconciliation data could result in attributions on a product basis that are less than or greater than weekly distributions. This
  is due to the ``weighing'' of the data i.e., motor gasoline on a weekly basis was $10,996 as compared to $10,379 as above. No additional duties are
  due to the averaging.



PART 147_TRADE FAIRS--Table of Contents




Sec.
147.0 Scope.

                      Subpart A_General Provisions

147.1 Definitions.
147.2 Articles which may be entered for a fair.
147.3 Bond required.

                   Subpart B_Procedure for Importation

147.11 Entry.
147.12 Invoices.
147.13 Transfer to fair building.
147.14 Articles not to be immediately entered and delivered to a fair.
147.15 Tentative appraisement.

                  Subpart C_Requirements of Other Laws

147.21 Marking under the Tariff Act of 1930.
147.22 Compliance with internal revenue laws and Federal Alcohol 
          Administration Act.
147.23 Compliance with Plant Quarantine Act and Federal Food, Drug, and 
          Cosmetic Act.
147.24 Merchandise subject to licensing.

                      Subpart D_Customs Supervision

147.31 Articles to be kept separate.
147.32 Detail of officers to protect the revenue.
147.33 Reimbursement by fair operator.

           Subpart E_Disposition of Articles Entered for Fairs

147.41 Removal or disposition pursuant to regulation.
147.42 Disposition generally.
147.43 Entry under the Customs laws.
147.44 Entry for another fair.
147.45 Merchandise from a foreign-trade zone.
147.46 Voluntary abandonment or destruction.

[[Page 130]]

147.47 Mandatory abandonment.

    Authority: 19 U.S.C. 66, 1623, 1624, 1751-1756, unless otherwise 
noted.

    Source: T.D. 70-134, 35 FR 9268, June 13, 1970, unless otherwise 
noted.



Sec. 147.0  Scope.

    This part governs the entry of merchandise intended for exhibition 
or for use in constructing, installing, or maintaining foreign exhibits 
at trade fairs which have been so designated by the Secretary of 
Commerce. It also contains provisions concerning Customs supervision of 
the merchandise, and the disposition of the merchandise after the fair 
has closed. The entry of articles which may be admitted free of duty 
under other provisions of this chapter may be governed by those 
provisions rather than the regulations in this part.



                      Subpart A_General Provisions



Sec. 147.1  Definitions.

    The following are general definitions for the purposes of part 147:
    (a) The Act. ``The Act'' means the Trade Fair Act of 1959. (Secs. 2-
7, 73 Stat. 18, 19; 19 U.S.C. 1751-1756.)
    (b) Fair. ``Fair'' means a fair, exhibition, or exposition 
designated by the Secretary of Commerce pursuant to the Trade Fair Act.
    (c) Fair operator. ``Fair operator'' means the party named by the 
Secretary of Commerce as the operator of the fair.
    (d) Port. ``Port'' means the port at which the fair is to be held, 
or if the fair is not to be held within the limits of a port, the port 
nearest to the location of the fair.
    (e) Closing date. ``Closing date'' means the date designated by the 
Secretary of Commerce as the date when the fair will close, including 
any extension granted by the Secretary of Commerce, or, if the fair 
closes earlier, the date on which the fair actually closes.
    (f) Articles for a fair. ``Articles for a fair'' includes, but is 
not limited to:
    (1) Actual exhibit items;
    (2) Pamphlets, brochures, and explanatory material in reasonable 
quantities relating to foreign exhibits at a fair;
    (3) Material for use in constructing, installing, or maintaining 
foreign exhibits at a fair.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 82-145, 47 
FR 35478, Aug. 16, 1982]



Sec. 147.2  Articles which may be entered for a fair.

    (a) General. Any article imported or brought into the United States 
may be entered under bond under the regulations of this part for the 
purpose of exhibition at a fair, or for use in constructing, installing, 
or maintaining foreign exhibits at a fair, if no duty or internal 
revenue tax has been paid, and the article is:
    (1) In a foreign-trade zone; or
    (2) Imported for exhibition under Chapter 98, Subchapter XII, 
Harmonized Tariff Schedule of the United States; or
    (3) In continuous Customs custody, including but not limited to 
articles:
    (i) Imported or brought into the United States for the purpose of 
direct entry at a particular fair;
    (ii) In Customs bonded warehouses;
    (iii) Unentered under the Customs laws and held in general order 
pending entry or exportation;
    (iv) On exhibition at another fair designated by the Secretary of 
Commerce.
    (b) Exception. Articles which have been entered under Chapter 98, 
Subchapter XIII, HTSUS, may not be entered under the regulations of this 
part.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 84-213, 49 
FR 41186, Oct. 19, 1984; T.D. 89-1, 53 FR 51263, Dec. 21, 1988]



Sec. 147.3  Bond required.

    The fair operator shall file a bond on Customs Form 301, containing 
the bond conditions set forth in Sec. 113.62 of this chapter in such 
amount as the port director requires. Liquidated damages shall be 
assessed by the port director under the bond if payments required by 
Sec. Sec. 147.33, 147.41 or 147.43 are not paid upon demand.

[T.D. 84-213, 49 FR 41186, Oct. 19, 1984]

[[Page 131]]



                   Subpart B_Procedure for Importation



Sec. 147.11  Entry.

    (a) Made in name of fair operator. All entries of articles for a 
fair shall be made at the port in the name of the fair operator which 
shall be deemed for Customs purposes the sole consignee of the 
merchandise entered under the Act and responsible to the Government for 
all duties and charges due the United States on account of such entries.
    (b) Merchandise arriving at port other than port of the fair. 
Articles to be entered under this subpart which arrive at ports other 
than the port of the fair shall be entered for immediate transportation 
without appraisement to the latter port in the manner prescribed in part 
18 of this chapter.
    (c) Form of entry. Articles shall be entered upon arrival at the 
port of the fair on a special form of entry to read substantially as 
follows:

                          Entry for Exhibition

                         Entry No. ------------

    Entry at the port of ------------------------ of articles consigned 
or transferred to ------------------------ (Fair operator) under ------
------------------ I.T. No. ------------------------ ex S.S. ----------
-------------- from ------------------------ on the ------------ day of 
------------, 19--, for exhibition purposes under the Trade Fair Act of 
1959.

------------------------------------------------------------------------
                               Package and                     Invoice
    Mark         Number         contents         Quality        value
------------------------------------------------------------------------
              ............  ................  ............  ............
              ............  ................  ............  ............
              ............  ................  ............  ............
              ............  ................  ............  ............
------------------------------------------------------------------------

________________________________________________________________________
                                                         (Fair operator)
By______________________________________________________________________

    (d) Supersedes previous entry. When entry for a fair is made under 
this part, such entry shall supersede any previous entry.



Sec. 147.12  Invoices.

    Articles intended for a fair under the provisions of the Act are 
subject to the invoice requirements of subpart F, part 141 of this 
chapter.

(R.S. 251, as amended, secs. 481, 484, 624, 46 Stat. 719, 722, as 
amended, 759 (19 U.S.C. 66, 1481, 1484, 1624))

[T.D. 85-39, 50 FR 9612, Mar. 11, 1985]



Sec. 147.13  Transfer to fair building.

    (a) Immediate delivery. The provisions governing immediate delivery 
in part 142 of this chapter are applicable to articles for a fair.
    (b) After entry. Upon the entry being made, a permit may be issued 
by the port director for the transfer of the articles covered thereby to 
the buildings in which they are to be exhibited or used, or, in his 
discretion, to the public stores for examination and subsequent delivery 
to the buildings in which they are to be exhibited or used.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 73-175, 38 
FR 17470, July 2, 1973]



Sec. 147.14  Articles not to be immediately entered and delivered to a fair.

    (a) Placed in bonded warehouses. If for any reason articles imported 
for a fair are not to be entered and delivered to a fair upon their 
arrival, the fair operator should request the port director, in writing, 
to cause such articles to be placed in a bonded warehouse under a 
``general order permit'' at the risk and expense of the fair operator. 
If no request is made and the articles remain unentered after 5 days 
from the date of arrival, they will be placed in general order.
    (b) Entry within 1 year. At any time within 1 year from the date 
such articles are imported or brought in, they may be entered under this 
part for a fair or entered under the general tariff law, or for 
exportation.
    (c) Abandonment. If not entered within such period, they will be 
regarded as abandoned to the Government.



Sec. 147.15  Tentative appraisement.

    All articles entered for a fair shall be tentatively appraised prior 
to exhibition or use.

[[Page 132]]



                  Subpart C_Requirements of Other Laws



Sec. 147.21  Marking under the Tariff Act of 1930.

    The marking requirements of the Tariff Act of 1930, as amended, and 
the regulations thereunder will not apply to articles for a fair, 
except, when such articles are entered for consumption. When entered for 
consumption, such articles shall be released from Customs custody only 
upon a full compliance with these marking requirements.



Sec. 147.22  Compliance with the internal revenue laws and Federal 
Alcohol Administration Act.

    The packaging, marking, and labeling requirements of the internal-
revenue laws, and the Federal Alcohol Administration Act (27 U.S.C. 201 
to 212), will not apply to articles entered under this part, but any 
article failing to comply with such requirements shall be conspicuously 
marked prior to exhibition ``Not labeled or packaged as required by 
law--not for sale.'' When any such article is withdrawn for consumption, 
it shall be released from Customs custody only upon a full compliance 
with such packaging, marking, and labeling requirements.



Sec. 147.23  Compliance with Plant Quarantine Act and Federal Food, Drug, 
and Cosmetic Act.

    (a) Plant Quarantine Act. The entry of plant material subject to 
restriction under the Plant Quarantine Act of 1912, as amended (7 U.S.C. 
151 through 164a, 167), shall not be permitted except under permits 
issued by the Plant Quarantine Division of the Agricultural Research 
Service, Department of Agriculture, and in accordance with the plant 
quarantine regulations.
    (b) Federal Food, Drug, and Cosmetic Act. The entry of food products 
shall conform to the requirements of the Federal Food, Drug, and 
Cosmetic Act, as amended (21 U.S.C. 301 et seq.), and the regulations 
issued thereunder.



Sec. 147.24  Merchandise subject to licensing.

    Merchandise, the importation of which is subject to the licensing 
regulations of any agency of the U.S. Government, may be entered for a 
fair only upon the presentation of the required license, or a waiver of 
such license.



                      Subpart D_Customs Supervision



Sec. 147.31  Articles to be kept separate.

    Articles for exhibit at a fair shall be segregated from domestic 
articles and from imported articles entered under the provisions of the 
general Customs laws and released from Customs custody.



Sec. 147.32  Detail of officers to protect the revenue.

    The port director shall detail an officer to act as his 
representative at the fair and shall station inside the buildings as 
many additional Custom officers and employees as may be necessary to 
properly protect the revenue.



Sec. 147.33  Reimbursement by fair operator.

    All actual and necessary charges for labor, services, and other 
expenses in connection with the entry, examination, appraisement, 
custody, abandonment, destruction, or release of articles entered under 
the regulations of this part, together with the necessary charges for 
salaries of Customs officers and employees in connection with the 
accounting for, custody of, and supervision over, such articles, shall 
be reimbursed by the fair operator to the Government, payment to be made 
on demand to the port director for deposit to the appropriation from 
which paid.



           Subpart E_Disposition of Articles Entered for Fairs



Sec. 147.41  Removal or disposition pursuant to regulation.

    Articles for a fair entered under this part shall not be removed 
from the fair premises, or otherwise disposed of, except in accordance 
with this subpart. The fair operator shall be liable for the payment of 
any unpaid duty, tax, fees, charges, or exaction due on any article 
removed from the fair premises or disposed of contrary to this subpart, 
including any article lost or stolen regardless of the fair operator's 
fault.

[[Page 133]]

The payment shall be made on demand by the port director.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 84-213, 49 
FR 41186, Oct. 19, 1984]



Sec. 147.42  Disposition generally.

    (a) Kinds of disposition. Any article entered for a fair under this 
part may be entered for consumption, for warehouse, or under any other 
provision of the Customs laws, or for another fair, or may be 
transferred to other Customs custody status or to a foreign-trade zone, 
or abandoned to the Government, or destroyed under Customs supervision, 
or exported, at any time before, or within 3 months after, the closing 
date of the fair.
    (b) Appraisement. Upon entry under any provision of the Customs 
laws, or at the expiration of 3 months after the closing date of the 
fair in the case of articles not previously entered or transferred, 
articles entered for fairs shall be appraised.
    (c) Period for performance of certain acts. In the case of any 
article entered under a provision of the Customs laws, or for another 
fair, or transferred to other Customs custody status, or to a foreign-
trade zone, the period prescribed for the performance of any act 
required by the provision governing the status under which the article 
is entered, or to which it is transferred, shall be computed from the 
date of such entry or transfer.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 70-181, 35 
FR 13436, Aug. 22, 1970]



Sec. 147.43  Entry under the Customs laws.

    (a) Payment of duties and taxes. Any applicable duties and internal 
revenue taxes on any article entered under any provision of the Customs 
laws must be paid on such article in its condition and quantity, and at 
the rate in effect, at the time of such entry.
    (b) Person to make entry. Entry of merchandise under the Customs 
laws from a fair may be made in the name of any person duly authorized 
in writing by the fair operator to make such entry.



Sec. 147.44  Entry for another fair.

    Articles entered for a fair which are to be entered for another fair 
under the provisions of this part shall be retained in continuous 
Customs custody.



Sec. 147.45  Merchandise from a foreign-trade zone.

    Articles entered for a fair from a foreign-trade zone status of 
``zone-restricted merchandise'' can afterwards be entered for 
consumption from a fair if the Foreign-Trade Zones Board has approved 
the entry for consumption as being in the public interest. Articles 
entered in the above manner are subject to the provisions of subheading 
9801.00.70, if aircraft, or subheading 9801.00.80, if not aircraft, 
unless excluded by U.S. Note 1(c), Chapter 98, Subchapter I, Harmonized 
Tariff Schedule of the United States.

(R.S. 251, as amended; secs. 1-21, 48 Stat. 998, 999, as amended; 1000, 
1002, as amended, 1003, 77A Stat. 14, sec. 624, 46 Stat. 759 (19 U.S.C 
66, 81a-81u, 1202 (Gen, Hdnt. 11)1624))

[T.D. 83-240, 48 FR 53098, Nov. 24, 1983, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988]



Sec. 147.46  Voluntary abandonment or destruction.

    At any time before or within 3 months after the closing date of the 
fair any article entered for a fair may be abandoned to the Government 
or destroyed under Customs supervision, upon compliance with Sec. 
158.43 of this chapter.[T.D. 70-134, 35 FR 9268, June 13, 1970, as 
amended by T.D. 72-258, 37 FR 20174, Sept. 27, 1972]



Sec. 147.47  Mandatory abandonment.

    Any article entered for a fair, and not disposed of under the 
provisions of this subpart prior to the expiration of 3 months after the 
close of the fair shall be regarded as abandoned to the Government, and 
subject to sale or destruction. Proceeds of sale shall be disposed of in 
the manner provided in sections 491, 492, and 493, Tariff Act of 1930, 
as amended, and the regulations thereunder. (See subpart D of part 127 
of this chapter.) Any duties or internal revenue taxes on such article 
shall be computed on the basis of its condition

[[Page 134]]

and quantity at the time it becomes subject to sale.

[T.D. 70-134, 35 FR 9268, June 13, 1970, as amended by T.D. 74-114, 39 
FR 12095, Apr. 3, 1974]



PART 148_PERSONAL DECLARATIONS AND EXEMPTIONS--Table of Contents




Sec.
148.0 Scope.

                      Subpart A_General Provisions

148.1 Registration of effects to be taken abroad.
148.2 Residence status of arriving persons.
148.3 Customs treatment after transiting the Panama Canal.
148.4 Accompanying articles.
148.5 Regular entry of articles in baggage.
148.6 Entry of unaccompanied shipments of effects subject to personal 
          exemptions.
148.7 Unclaimed baggage.
148.8 Temporary importation by residents arriving for short visits.

                         Subpart B_Declarations

148.11 Declaration required.
148.12 Oral declarations.
148.13 Written declarations.
148.14 Family declarations.
148.15 Inclusion of articles not for personal or household use.
148.16 Amendment of declaration.
148.17 Declaration on arrival incidental to further foreign travel.
148.18 Failure to declare.
148.19 False or fraudulent statement.

   Subpart C_Examination of Baggage and Collection of Duties and Taxes

148.21 Opening of baggage, compartments, or vehicles.
148.22 Examination of air travelers' baggage in foreign territory.
148.23 Examination and clearance of baggage.
148.24 Determination of dutiable value.
148.25 Reexamination and protest.
148.26 Collection of internal revenue taxes.
148.27 Receipt for payment.

              Subpart D_Exemptions for Returning Residents

148.31 Effects taken abroad.
148.32 Vehicles, aircraft, boats, teams and saddle horses taken abroad.
148.33 Articles acquired abroad.
148.34 Family grouping of exemptions for articles acquired abroad.
148.35 Length of stay for exemption of articles acquired abroad.
148.36 Frequency of allowance of exemption for articles acquired abroad.
148.37 Replacement of unsatisfactory articles acquired abroad.
148.38 Sale of articles acquired abroad.
148.39 Rented automobiles.

                  Subpart E_Exemptions for Nonresidents

148.41 Articles carried through the United States.
148.42 Personal effects.
148.43 Tobacco products and alcoholic beverages.
148.44 Gifts.
148.45 Vehicles and other conveyances.
148.46 Sale of exempted articles.

                       Subpart F_Other Exemptions

148.51 Special exemption for personal or household articles.
148.52 Exemption for household effects used abroad.
148.53 Exemption for tools of trade.
148.54 Exemption for effects of citizens dying abroad.
148.55 Exemption for articles bearing American trademark.

            Subpart G_Crewmember Declarations and Exemptions

148.61 Status as crewmembers.
148.62 Declaration and entry of articles by crewmembers.
148.63 Articles for use while on temporary leave.
148.64 Administrative exemption.
148.65 Exemption for resident crewmembers.
148.66 Exemptions for nonresident crewmembers.
148.67 Penalties for failure to declare articles.

  Subpart H_Military and Civilian Employees of the United States, and 
                                Evacuees

148.71 Status of persons in service of United States as returning 
          residents.
148.72 [Reserved]
148.73 Baggage on carriers operated by the Department of Defense.
148.74 Exemption on termination of assignment to extended duty or on 
          evacuation.
148.75 Persons ineligible for exemption on termination of assignment.
148.76 Waiver of requirements or limitations.

[[Page 135]]

148.77 Entry of effects on termination of assignment to extended duty, 
          or on evacuation.

      Subpart I_Personnel of Foreign Governments and International 
      Organizations and Special Treatment for Returning Individuals

148.81 General provisions.
148.82 Diplomatic, consular, and other privileged personnel.
148.83 Diplomatic and consular bags.
148.84 Special treatment for returning individuals.
148.85 Subsequent importations for the personal or family use of 
          diplomatic, consular and other privileged personnel.
148.86 Articles for official use of representatives of foreign 
          governments and public international organizations.
148.87 Officers and employees of, and representatives to public 
          international organizations.
148.88 Certain representatives to and officers of the United Nations and 
          the Organization of American States.
148.89 Property of public international organizations and foreign 
          governments.
148.90 Foreign military personnel.

          Subpart J_Noncommercial Importations of Limited Value

148.101 Applicability.
148.102 Flat rate of duty.
148.103 Family grouping of allowances.
148.104 Frequency of use.
148.105 Procedure for excluding articles from flat rate of duty.
148.106 Excluded articles of merchandise.

    Subpart K_Unaccompanied Shipments from American Samoa, Guam, the 
 Commonwealth of the Northern Mariana Islands, or the Virgin Islands of 
                            the United States

148.110 Applicability.
148.111 Written declaration for unaccompanied articles.
148.112 Evidence of purchase.
148.113 Declaration, entry, and collection of duty.
148.114 Shipment of unaccompanied articles.
148.115 Release of shipment.
148.116 Claim for refund.

    Authority: 19 U.S.C. 66, 1496, 1498, 1624. The provisions of this 
part, except for subpart C, are also issued under 19 U.S.C. 1202 
(General Note 23, Harmonized Tariff Schedule of the United States);
    Section 148.21 also issued under 19 U.S.C. 1461, 1462.
    Section 148.22 also issued under 19 U.S.C. 1629;
    Sections 148.43, 148.51, 148.63, 148.64, 148.74 also issued under 19 
U.S.C. 1321;
    Section 148.87 also issued under 22 U.S.C. 288.

    Source: T.D. 73-27, 38 FR 2449, Jan. 26, 1973, unless otherwise 
noted.



Sec. 148.0  Scope.

    This part contains the regulations governing the allowance of 
exemptions for residents and nonresidents arriving in the United States, 
for crewmembers of carriers engaged in international traffic, for 
military and civilian employees of the United States, for certain 
evacuees, and for certain personnel of foreign governments and 
international organizations. Procedures and requirements are also set 
forth pertaining to registration of articles to be taken abroad, 
declaration and entry, and examination of baggage, and collection of 
duties and taxes.



                      Subpart A_General Provisions



Sec. 148.1  Registration of effects to be taken abroad.

    (a) Persons who may use procedure. Any person, except a nonresident 
seaman, airman, or person engaged in similar employment, who intends to 
take effects of foreign origin abroad may register such articles before 
departure from the United States in order to facilitate their 
identification on return to the United States. Only articles of foreign 
origin having serial numbers or other distinctive, permanently affixed 
unique markings can be registered.
    (b) Procedures for registration. Applicants for registration of 
articles of foreign origin shall present the articles, together with a 
completed, but unsigned, Customs Form 4457, which may be obtained in 
advance of departure, to a Customs officer. After the Customs officer 
has examined the articles and verified their description, he shall have 
the applicant sign the form. The Customs officer shall then sign the 
form and return it to the applicant for presentation on return of the 
articles. Customs form 4455 may be required in any case in which Customs 
form 4457 will

[[Page 136]]

not adequately serve the purpose of registration.
    (c) Presentation on return and reuse. The form shall be presented to 
the Customs officer when the registered articles are returned to the 
United States. The form shall be valid for reuse as long as the document 
is legible to identify the registered articles.

[T.D. 82-102, 47 FR 24119, June 3, 1982, as amended by T.D. 91-35, 56 FR 
19260, Apr. 26, 1991]



Sec. 148.2  Residence status of arriving persons.

    (a) General. Persons arriving from foreign countries shall be 
divided into two classes for Customs purposes:
    (1) Residents of the United States returning from abroad, and
    (2) All other persons, hereinafter referred to as nonresidents.
    (b) Status as returning resident. Citizens of the United States, or 
persons who have formerly resided in the United States, (including 
American citizens who are residents of American Samoa, Guam, the 
Commonwealth of the Northern Mariana Islands, or the Virgin Islands of 
the United States) shall be deemed residents of the United States 
returning from abroad within the meaning of ``residents'' as used in 
Chapter 98, Subchapter IV, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), in the absence of satisfactory evidence that 
they have established a home elsewhere. For this purpose, the residence 
of a wife shall be deemed to be that of her husband unless satisfactory 
evidence is presented that the wife has established a separate residence 
elsewhere. The residence of a minor child shall be presumed to be that 
of his parents.
    (c) Status as nonresident. Any person arriving in the United States 
who is not a resident of the United States or who, though a resident of 
the United States, is not returning from abroad, shall be treated for 
the purpose of these regulations as a nonresident.
    (d) Optional claim of nonresident status. Any person arriving in the 
United States who would otherwise be considered a returning resident, 
may claim at his option the status of a nonresident if he intends to 
remain in the United States for only a short period of time before 
returning abroad. If the status as a nonresident claimed by an arriving 
person is allowed, the procedures in Sec. 148.8 shall be followed.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 89-1, 53 FR 51263, Dec. 21, 1988; T.D. 97-75, 
62 FR 46441, Sept. 3, 1997]



Sec. 148.3  Customs treatment after transiting the Panama Canal.

    Passengers' baggage and effects and purchases of officers and 
crewmembers landed in the United States from vessels which have 
transited the Panama Canal are subject to Customs examination and 
treatment in the same manner as arrivals from any other foreign country.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 79-276, 44 FR 
61957, Oct. 29, 1979]



Sec. 148.4  Accompanying articles.

    (a) Generally. Articles shall be considered as accompanying a 
passenger or brought in by him if the articles arrive on the same 
vessel, vehicle, or aircraft on the same date as that of his arrival in 
the United States.
    (b) Baggage shipped as freight. Articles in baggage shipped as 
freight on a bill of lading or airway bill shall be considered as 
accompanying a passenger when the baggage arrives on the conveyance on 
which he arrives in the United States.
    (c) Precleared articles. Articles in baggage, or in baggage shipped 
as freight, shall be considered as accompanying a passenger if examined 
at an established preclearance station and the baggage is hand-carried, 
checked or manifested on the conveyance on which he arrives in the 
United States.
    (d) Automobiles. An automobile which arrives on the same mode of 
conveyance on the same date as a passenger arrives in the United States 
shall be considered as accompanying him.
    (e) Misdirected baggage. Baggage which arrives on the same mode of 
conveyance ahead of, or after a passenger, shall be treated as 
accompanying him if it is fully evident to the examining officer from 
the circumstances that:
    (1) The passenger intended the baggage to arrive with him; and

[[Page 137]]

    (2) It was misdirected through no fault of the passenger.



Sec. 148.5  Regular entry of articles in baggage.

    Subject to any applicable exemption from entry requirements, 
articles imported as baggage but not passed under a baggage declaration 
or under the procedure provided in Sec. 148.6 for unaccompanied 
shipments of effects subject to personal exemptions shall be entered in 
the same manner as a cargo importation of like goods. In making regular 
entry for articles imported in baggage, the value of articles entitled 
to free entry under subheadings 9804.00.10, or 9804.00.45, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), shall be 
disregarded in determining whether formal or informal entry is required.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51263, Dec. 21, 1988]



Sec. 148.6  Entry of unaccompanied shipments of effects subject to 
personal exemptions.

    (a) Declaration to support free entry. When effects claimed to be 
free of duty under subheadings 9804.00.10, 9804.00.20, 9804.00.25, 
9804.00.35 or 9804.00.45, Harmonized Tariff Schedule of the United 
States (HTSUS) (19 U.S.C. 1202), do not accompany the importer on his 
arrival in the United States or are forwarded in bond, a declaration of 
the importer on Customs Form 3299 shall be required to support the claim 
for free entry. However, an oral declaration may be accepted in lieu of 
a written declaration on Customs Form 3299, for effects of a resident 
which are free of duty under subheadings 9804.00.10 or 9804.00.45. 
Effects of returning residents entitled to free entry under subheadings 
9804.00.10 or 9804.00.45 (except automobiles and other vehicles of 
residents returning from countries other than Canada or Mexico) need not 
be itemized if a written declaration is required.
    (b) Exemption from entry. If the port director is satisfied that an 
entry would serve no good purpose, none need be required, but evidence 
of ownership for Customs purposes, such as a carrier's certificate or 
properly endorsed bill of lading, shall be required with the 
declaration. Such exemption from entry may also be applied with respect 
to household effects or tools of trade entitled to free entry (see 
Sec. Sec. 148.52 and 148.53 respectively) which are unaccompanied or 
forwarded in bond.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]



Sec. 148.7  Unclaimed baggage.

    Articles in passengers' baggage on which duties due are not paid and 
baggage not claimed within a reasonable time shall be treated as 
unclaimed and sent to general order.



Sec. 148.8  Temporary importation by residents arriving for short visits.

    A person claiming the status of a nonresident upon arrival for a 
short visit in the United States before returning abroad may import 
articles free of duty under subheadings 9804.00.20, 9804.00.25, 
9804.00.30, 9804.00.35, Harmonized Tariff Schedule of the United States 
(19 U.S.C. 1202), in accordance with the following procedure:
    (a) The person claiming the status shall agree to export all such 
articles upon his departure from the United States, except articles 
imported as gifts under subheading 9804.00.30, and articles consumed 
during his visit;
    (b) When required to do so, the person claiming the status shall 
list all articles of substantial value which he is importing on Customs 
Form 4455, in duplicate, noting thereon the expected duration of his 
visit. He shall present the completed form to the inspecting officer who 
will initial both copies and return the duplicate to him;
    (c) Upon his departure from the United States at the completion of 
his visit, the person claiming the status of a nonresident shall present 
to a Customs officer the duplicate copy of Customs Form 4455, initialed 
by the inspecting officer, and the articles listed thereon shall be 
subject to inspection; and
    (d) If he decides not to return abroad, the person claiming the 
status shall immediately notify the director of the port of entry. The 
port director will advise him of the amount of duties and

[[Page 138]]

taxes due by reason of his failure to return abroad.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]



                         Subpart B_Declarations



Sec. 148.11  Declaration required.

    All articles brought into the United States by any individual shall 
be declared to a Customs officer at the port of first arrival in the 
United States, on a conveyance en route to the United States on which a 
Customs officer is assigned for that purpose, or at a preclearance 
office in a foreign country where a United States Customs officer is 
stationed for that purpose.



Sec. 148.12  Oral declarations.

    (a) Generally. Returning residents and nonresidents arriving in the 
United States may make an oral declaration under the conditions set 
forth in paragraph (b) of this section. However, written declarations 
may be required generally or in respect to particular types of traffic 
at any port if necessary to effect prompt and orderly clearance of 
passengers and their effects, and may be required in particular cases at 
any port if deemed necessary to protect the revenue. If an oral 
declaration is permitted, completion of the identifying information on 
Customs Form 6059-B may be required.
    (b) When permitted. Oral declarations may be permitted under the 
following conditions:
    (1) Residents. A returning resident may make an oral declaration if:
    (i) The aggregate fair retail value in the country of acquisition of 
all accompanying articles acquired abroad by him and of alterations and 
dutiable repairs made abroad to personal and household effects taken out 
and brought back by him does not exceed:
    (A) $400; or
    (B) $600 in the case of a direct arrival from a beneficiary country 
as defined in Sec. 10.191(b)(1) of this chapter, not more than $400 of 
which shall have been acquired elsewhere than in beneficiary countries; 
or
    (C) $1,200 in the case of a direct or indirect arrival from American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the 
Virgin Islands of the United States, not more than $400 of which shall 
have been acquired elsewhere than in such locations except that up to 
$600 of which may have been acquired in one or more beneficiary 
countries as defined in Sec. 10.191(b)(1) of this chapter;
    (ii) None of his accompanying articles are forwarded in bond; and
    (iii) None of his accompanying articles are imported for the account 
of any other person or for sale.
    (2) Nonresidents. An arriving nonresident may make an oral 
declaration if all the articles he has to declare are:
    (i) Entitled to free entry under his personal exemptions (see 
Subpart E of this part); or
    (ii) Eligible for the administrative exemption for articles not 
exceeding $200 in aggregate value, provided in section 321(a)(2)(B), 
Tariff Act of 1930, as amended (19 U.S.C. 1321(a)(2)(B)) (see Sec. 
148.51).
    (c) Memorandum baggage declaration for dutiable articles. When an 
arriving person is carrying a few dutiable or taxable articles which can 
be readily identified and segregated from articles entitled to free 
entry under his personal exemptions, the Customs officer may prepare a 
memorandum baggage declaration using a cash receipt, Customs Form 368 or 
368A, for dutiable or taxable articles if he determines that a written 
declaration by the arriving person is not essential.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 92-
56, 57 FR 24944, June 12, 1992; T.D. 94-51, 59 FR 30296, June 13, 1994; 
T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.13  Written declarations.

    (a) When required. Unless an oral declaration is accepted under 
Sec. 148.12, the declaration required of a person arriving in the 
United States shall be in writing on Customs Form 6059-B.
    (b) Completion and presentation of written declarations. The person 
arriving in the United States shall complete the information required by 
Customs Form 6059-B and shall list all articles acquired abroad which 
are in his possession at the time of arrival. Individual items not 
exceeding $5 per item in fair

[[Page 139]]

retail value in the country of acquisition may be grouped on the written 
declaration as ``Miscellaneous'' up to but not exceeding a total value 
of $50. Articles not requiring itemization as set forth in paragraph (c) 
of this section shall be declared orally to the Customs officer. The 
form shall be presented to the Customs officer who will inspect the 
passenger's baggage.
    (c) Itemization of certain articles not required. Except as required 
by Sec. 148.62 or Sec. 148.66 for crewmembers' articles, the following 
need not be itemized in written declarations:
    (1) Effects of a returning resident entitled to free entry under 
subheading 9804.00.10, Harmonized Tariff Schedule of the United States 
(HTSUS) (19 U.S.C. 1202), for tools of trade taken abroad, or under 
subheading, 9804.00.45, HTSUS, for personal or household effects taken 
abroad. However, automobiles and other vehicles of residents returning 
from countries other than Canada or Mexico and the cost of all repairs 
or alterations to articles taken abroad must be itemized.
    (2) Effects of a nonresident entitled to free entry under subheading 
9804.00.20, HTSUS (19 U.S.C. 1202), for wearing apparel and other 
similar personal effects; subheading 9804.00.25, HTSUS, for tobacco 
products and alcoholic beverages; subheading 9804.00.30, HTSUS, for 
articles to be disposed of as bona fide gifts; or subheading 9804.00.40, 
HTSUS, for articles accompanying a person in transit to a place outside 
U.S. customs territory.
    (3) Books, libraries, furniture, and similar household effects 
entitled to free entry under subheading 9804.00.05, HTSUS.
    (d) Value. Opposite the description of each article required to be 
declared specifically in a written declaration, the passenger shall 
state either:
    (1) The price actually paid for the article in the currency of 
purchase, or its equivalent in U.S. currency; or
    (2) The fair retail value in the country of acquisition if the 
article was not acquired by purchase, in the currency of the country in 
which the article was acquired, or its equivalent in U.S. currency.
    (e) Acknowledgment before Customs officer. Each written declaration 
shall be acknowledged by the declarant before the Customs officer who 
examines the baggage covered by the declaration.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 87-89, 52 FR 
24445, July 1, 1987; T.D. 89-1, 53 FR 51264, Dec. 21, 1988]



Sec. 148.14  Family declarations.

    A family group residing in one household, traveling together, and 
having the same residence status may be permitted to declare orally 
articles acquired abroad for the personal or household use of any member 
of the family if the value of such articles does not exceed the total 
amount of the exemption to which the family group is entitled. (See 
Sec. 148.34.) Where a written declaration is required, one member of a 
family group may declare for all. Servants accompanying a family group 
shall not be included in the family declaration.



Sec. 148.15  Inclusion of articles not for personal or household use.

    Articles not personal in character, or which are intended for sale 
or are brought in on commission for another person, may be included in 
the baggage declaration of a resident or nonresident under the 
conditions specified in Sec. 148.23(c). If not so included, regular 
entry shall be required.



Sec. 148.16  Amendment of declaration.

    (a) Before examination. A passenger shall be permitted to add an 
article to his declaration if, before examination of his baggage has 
begun, the fact that the article has not been declared is brought to the 
attention of the examining officer by the passenger.
    (b) After examination is begun. A passenger shall be permitted to 
add an article to his declaration after examination of his baggage has 
begun if, before any undeclared article is found, the passenger advises 
the examining officer that he has such an article and the officer is 
satisfied that there was no fraudulent intent. Under no circumstances 
shall a passenger be permitted to add any undeclared article to his 
declaration after such article has been discovered by the examining 
officer.

[[Page 140]]



Sec. 148.17  Declaration on arrival incidental to further foreign travel.

    (a) Declaration on incidental arrival. A resident who enters the 
United States merely as an incident of foreign travel and who will 
continue his foreign travel before finally returning to the United 
States from a continuous trip shall declare, but need not clear through 
Customs, any articles he has acquired or had repaired or altered while 
abroad. The incidental character of the arrival shall be made known to 
the Customs officer.
    (b) Treatment of articles on incidental arrival. In order that a 
resident may claim the $400, $600, or $1,200 exemption upon his final 
arrival in the United States from a continuous trip, articles 
accompanying him at the time of an incidental arrival may be exported 
directly from Customs custody or after transportation in bond, or the 
articles may be left in Customs custody if the resident upon his final 
return is to arrive at the Customs facility where the articles are 
deposited.
    (c) Failure to advise of incidental character of arrival. If the 
traveler fails to advise the Customs officer of the incidental character 
of his arrival, or for other reason declares any articles for allowance 
of the $400, $600, or $1,200 exemption, such declaration shall mark the 
beginning of the respective period or periods during which a further 
exemption cannot be granted.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.18  Failure to declare.

    (a) Penalty incurred. Any article in the baggage of a passenger 
arriving from a foreign country which is not declared as required by 
this subpart shall be seized if it is available for seizure at the time 
the violation is detected, and the personal penalty prescribed by 
section 497, Tariff Act of 1930 (19 U.S.C. 1497), shall be demanded from 
the passenger. If the article is not seized, a claim for the personal 
penalty shall be made against the person who imported the article 
without declaration. No duty shall be collected, because undeclared 
articles are treated as smuggled.
    (b) Remission of liability. When an article not declared as required 
by this subpart is found in the baggage of a person arriving in the 
United States, the personal penalty and forfeiture may be mitigated or 
remitted in accordance with the Guidelines for Disposition of Violations 
of 19 U.S.C. 1497 in the appendix to part 171 of this chapter.

[T.D. 83-145, 48 FR 30100, June 30, 1983]



Sec. 148.19  False or fraudulent statement.

    A passenger who makes any false or fraudulent statement or engages 
in other conduct within the purview of section 592, Tariff Act of 1930, 
as amended (19 U.S.C. 1592), whereby a Customs officer is or may be 
induced to pass an article free of duty or at less than the proper 
amount of duty, or to treat an article in some other manner in order to 
obtain a benefit, shall be deemed to have violated 19 U.S.C. 1592. In 
any such case the article involved shall be seized only if one or more 
of the conditions set forth in section 162.75 of this chapter are 
present, if it is available for seizure at the time the violation is 
detected, and if such seizure is otherwise practicable, unless the 
article is in the possession of an innocent holder for value who has 
full right to possession as against any party to the Customs violation. 
If seizure is not made, an amount equivalent to the maximum penalty 
which may be assessed in accordance with the passenger's degree of 
culpability as provided in 19 U.S.C. 1592(c) shall be demanded from the 
passenger. The amount demanded in lieu of seizure shall be determined in 
accordance with the guidelines contained in the appendix to part 171 of 
this chapter. In all cases, the estimated duties shall be demanded of 
the passenger as soon as possible after the discovery of the violation. 
Any applicable internal revenue tax shall also be demanded unless the 
merchandise is to be, or has been, forfeited.

[T.D. 84-18, 49 FR 1678, Jan. 13, 1984; 49 FR 3986, Feb. 1, 1984]

[[Page 141]]



   Subpart C_Examination of Baggage and Collection of Duties and Taxes



Sec. 148.21  Opening of baggage, compartments, or vehicles.

    A Customs officer has the right to open and examine all baggage, 
compartments and vehicles brought into the United States under Sections 
461, 462, 496 and 582, Tariff Act of 1930, as amended (19 U.S.C. 1461, 
1462, 1496, and 1582) and 19 U.S.C. 482. To the extent practical, the 
owner or his agent shall be asked to open the baggage, compartment or 
vehicle first. If the owner or his agent is unavailable or refuses to 
open the baggage, compartment, or vehicle, it shall be opened by the 
Customs officer. If any article subject to duty, or any prohibited 
article is found upon opening by the Customs officer, the whole contents 
and the baggage or vehicle shall be subject to forfeiture, pursuant to 
19 U.S.C. 1462.

[T.D. 95-86, 60 FR 54188, Oct. 20, 1995]



Sec. 148.22  Examination of air travelers' baggage in foreign territory.

    (a) Examination and surrender of declaration. When places have been 
established in a foreign country where U.S. Customs officers have been 
stationed for the purpose of conducting Customs inspections and 
examinations (see Sec. Sec. 101.5 and 162.8 of this chapter), persons 
destined to the United States on flights shall present themselves to 
those officers for inspection and examination of their baggage which may 
be passed in accordance with Sec. 148.23 prior to boarding the flight. 
They shall comply with all U.S. Customs laws and other civil and 
criminal laws of the United States relating to importation of 
merchandise, including baggage, to the filing of false or fraudulent 
statements, and to the unlawful removal of merchandise from Customs 
custody, in the same manner as if the passengers, were arriving at an 
airport within the Customs territory of the United States. When baggage 
is examined in foreign territory, the baggage declaration shall be 
surrendered to the Customs officer at the airport of departure for the 
United States prior to boarding the flight.
    (b) Subsequently acquired articles. When a person whose baggage has 
been examined and passed in foreign territory in accordance with 
paragraph (a) of this section subsequently acquires additional articles 
prior to return to the United States, the Customs officer to whom the 
declaration was surrendered may permit the amendment of that declaration 
to include the additional articles.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 77-241, 42 FR 
54944, Oct. 12, 1977; T.D. 89-22, 54 FR 5076, Feb. 1, 1989]



Sec. 148.23  Examination and clearance of baggage.

    (a) Articles free of duty. The inspector, including inspectors on 
trains or ferries, who examines the baggage of any person arriving in 
the United States may examine and pass, without limitation as to value, 
the following articles in such baggage or otherwise accompanying such 
person:
    (1) All articles which are for the personal or household use of the 
arriving person and are free of duty under Chapter 98, Subchapter IV, 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 
1202), including automobiles and other articles under Sec. 148.32.
    (2) Works of art classifiable under subheadings 9701.10.00 or 
9701.90.00, HTSUS.
    (3) Works of art classifiable under subheadings 9702.00.00 or 
9703.00.00, HTSUS, upon compliance with Sec. 10.48 of this chapter.
    (b) Articles subject to duty. The inspector who examines the baggage 
of any person arriving in the United States may examine, determine the 
dutiable value of, collect duty on, and pass articles accompanying the 
arriving person which are for his personal or household use but are 
subject to duty, including articles imported to be disposed of by him as 
bona fide gifts.
    (c) Articles not for personal use--(1) Valued at not more than 
$2,000 (with exceptions). The inspector may also examine, determine the 
dutiable value of, collect duty on, and pass articles accompanying any 
person arriving in the United States properly listed on the baggage 
declaration which are not for

[[Page 142]]

the personal or household use of the declarant or which are intended for 
sale or are brought in on commission for another, provided the aggregate 
value of such articles is not more than $2,000 (except for articles 
valued in excess of $250 classified in Sections VII, VIII, XI, and XII; 
Chapter 94, and Chapter 99, Subchapter III and IV, HTSUS).
    (2) Valued over $2,000 (with exceptions). Articles in the baggage of 
or otherwise accompanying any person arriving in the United States which 
have an aggregate value over $2,000 (except for articles valued in 
excess of $250 classified in Sections VII, VIII, XI, and XII; Chapter 94 
and Chapter 99, Subchapters III and IV, HTSUS) and are not intended for 
his personal or household use, or are intended for sale or are brought 
in on commission for another, may be examined and entered and cleared on 
a baggage declaration at the place of their arrival with a passenger if:
    (i) The articles are accompanied by a proper invoice if one is 
required (see Sec. 141.83 of this chapter); and
    (ii) It is practicable to appraise the articles at the place of 
arrival.
    (d) Examination of tea for personal use imported in baggage. Tea for 
personal use in one or more packages weighing not more than 5 pounds 
each, when imported in a passenger's baggage, may be delivered without 
examination for purity under 21 U.S.C. 41-50 and without payment of the 
examination fee prescribed in 21 U.S.C. 46a.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 84-149, 49 FR 
28699, July 16, 1984; T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 89-
1, 53 FR 51264, Dec. 21, 1988; T.D. 89-82, 54 FR 36026, Aug. 31, 1989; 
T.D. 98-28, 63 FR 16417, Apr. 3, 1998]



Sec. 148.24  Determination of dutiable value.

    (a) Principles applied. In determining the dutiable value of 
articles examined under Sec. 148.23, the Customs inspector shall apply 
the principles of section 402, Tariff Act of 1930, as amended (19 U.S.C. 
1401a), and shall not regard the declared value or price as conclusive.
    (b) Adjustment of value declared. An adjustment shall be made by the 
Customs inspector whenever the purchase price or value declared differs 
from the fair retail value, whether by reason of depreciation due to 
wear or use, circumstances of purchase, or acquisition, or for any other 
reason. He shall give due consideration to the condition of the articles 
at the time of importation, but he shall not make any allowance for wear 
and use in excess of 25 per centum of the declared price or value of a 
worn or used article. A passenger who desires to claim a larger 
allowance may arrange for formal entry and appraisement of his goods.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 87-89, 52 FR 
24445, July 1, 1987]



Sec. 148.25  Reexamination and protest.

    (a) Reexamination. Whenever the Customs officer deems it advisable 
any or all of a passenger's baggage may be sent to the public stores for 
examination or reexamination. Passengers dissatisfied with the 
assessment of duty on their baggage may demand a reexamination, provided 
the articles have not been removed from Customs custody. In either case, 
a receipt for the baggage to be examined or reexamined shall be given on 
Customs Form 6051.
    (b) Protest. If the passenger remains dissatisfied with the 
assessment of duty after reexamination, he shall pay the duty assessed 
and may protest the decision of the port director in accordance with 
part 174 of this chapter.



Sec. 148.26  Collection of internal revenue taxes.

    (a) Cigars and cigarettes. The internal revenue tax on taxable 
cigars and cigarettes in a passenger's baggage shall be paid to Customs, 
using the Customs entry form as a return. Any such return shall show the 
kind, the quantity, and the tax by class on cigars and cigarettes 
separately from the statement of duty. Unless for the personal 
consumption of the importer or disposition as his bona fide gift, cigars 
and cigarettes are subject to the packaging and marking requirements in 
the regulations of the Bureau of Alcohol, Tobacco, and Firearms.
    (b) Alcoholic beverages. The internal revenue tax shall be collected 
on all

[[Page 143]]

wines and liquors in excess of the quantity entitled to exemption as 
specified in this part.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]



Sec. 148.27  Receipt for payment.

    When duties and internal revenue taxes on articles in a passenger's 
baggage are collected, a receipt on Customs Form 368 or 368A shall be 
issued to the passenger if such duties and taxes are paid in cash. If 
such duties and taxes are paid by personal check, the check shall be the 
passenger's receipt unless a receipt is requested.

[T.D. 73-27 38 FR 2449, Jan. 26, 1973, as amended by T.D. 92-56, 57 FR 
24944, June 12, 1992]



              Subpart D_Exemptions for Returning Residents



Sec. 148.31  Effects taken abroad.

    (a) Exemption. Each returning resident (including American citizens 
who are residents of American Samoa, Guam, the Commonwealth of the 
Northern Mariana Islands, or the Virgin Islands of the United States) is 
entitled to bring in free of duty and internal revenue tax under 
subheading 9804.00.45, and Chapter 98, U.S Note 3, Harmonized Tariff 
Schedule of the United States, (19 U.S.C. 1202), all personal and 
household effects taken abroad. To ensure allowance of the exemption, 
articles of foreign origin should be registered in accordance with Sec. 
148.1. Automobiles and other vehicles, aircraft, boats, teams and saddle 
horses, together with their accessories, may be brought in free of duty 
if taken abroad for noncommercial use (see Sec. 148.32).
    (b) Repair or alteration while abroad. If any such personal or 
household effect taken abroad has been advanced in value or improved in 
condition while abroad by repairs (including cleaning) not merely 
incidental to wear or use while abroad, or by alterations (including 
additions) which did not change the identity of the article, the cost or 
value of such repairs or alterations is subject to duty unless all or 
part of such cost or value is covered by an allowance of the $400, $600, 
or $1,200 exemption for articles acquired abroad (see Sec. 148.33). An 
effect taken abroad and there changed into a different article is 
dutiable at its full value when returned to the United States, unless 
covered in whole or in part by some provision for free entry.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 86-118, 51 FR 22516, June 20, 1986; T.D. 89-
1, 53 FR 51264, Dec. 21, 1988; T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.32  Vehicles, aircraft, boats, teams and saddle horses taken 
abroad.

    (a) Admission free of duty. Automobiles and other vehicles, 
aircraft, boats, teams and saddle horses, together with their 
accessories, taken abroad for noncommercial use and returned by a 
returning resident shall be admitted free of duty upon being 
satisfactorily identified.
    (b) Identification of articles taken abroad. Upon the request of the 
owner or his agent, the port director shall cause any article described 
in paragraph (a) of this section to be examined before it is taken 
abroad, and shall issue a certificate of registration therefor on 
Customs Form 4455. On the return of the article, the certificate may be 
accepted as satisfactory identification of the described article for the 
purpose of admitting the article free of duty. In lieu of Customs Form 
4455, the following may be accepted as satisfactory identification of 
such articles taken abroad:
    (1) For an automobile, the State registration card;
    (2) For an aircraft, the certificate of registration issued by the 
Federal Aviation Administration; and
    (3) For a pleasure boat, the yacht license or motorboat 
identification certificate.
    (c) Repairs, alterations, and accessories. Repairs made abroad to 
articles described in paragraph (a) of this section, if incidental to 
use abroad, are not subject to duty. Repairs not incidental to use 
abroad, and alterations and additions made abroad, shall be assessed 
with duty upon their value at the rate at which the article itself would 
be dutiable if imported. Accessories for articles described in paragraph 
(a) of this section which are acquired abroad are

[[Page 144]]

dutiable as if separately imported. Any accessories, repairs, 
alterations, or additions, which accompany the returning resident at the 
time of his return to the United States shall be included in his baggage 
declaration.
    (d) Entry. Entry on a baggage declaration or regular entry (see 
Sec. 148.5) shall be required if:
    (1) The owner or his agent is unable to produce a proper 
registration card or certificate to cover the article;
    (2) A claim for free entry of repairs, alterations, additions, or 
accessories is to be made under the $400, $600, or $1,200 returning 
resident's exemption for articles acquired abroad; or
    (3) Duty is to be collected.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.33  Articles acquired abroad.

    (a) Exemption. Each returning resident is entitled to bring in free 
of duty and internal revenue tax under subheadings 9804.00.65, 
9804.00.70 and 9804.00.72, and Chapter 98, U.S. Note 3, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), articles for his 
personal or household use which were purchased or otherwise acquired 
abroad merely as an incident of the foreign journey from which he is 
returning, subject to the limitations and conditions set forth in this 
section and Sec. Sec. 148.34-148.38. The aggregate fair retail value in 
the country of acquisition of such articles for personal and household 
use shall not exceed:
    (1) $400, and provided that the articles accompany the returning 
resident;
    (2) Whether or not the articles accompany the returning resident, 
$600 in the case of a direct arrival from a beneficiary country as 
defined in Sec. 10.191(b)(1) of this chapter, not more than $400 of 
which shall have been acquired elsewhere than in beneficiary countries; 
or
    (3) Whether or not the articles accompany the returning resident, 
$1,200 in the case of a direct or indirect arrival from American Samoa, 
Guam, the Commonwealth of the Northern Mariana Islands, or the Virgin 
Islands of the United States, not more than $400 of which shall have 
been acquired elsewhere than in such locations except that up to $600 of 
which may have been acquired in one or more beneficiary countries as 
defined in Sec. 10.191(b)(1) of this chapter.
    (b) Application to articles of highest rate of duty. The $400, $600, 
or $1,200 exemption shall be applied to the aggregate fair retail value 
in the country of acquisition of the articles acquired abroad which are 
subject to the highest rates of duty. If an internal revenue tax is 
applicable, it shall be combined with the duty in determining which 
rates are highest.
    (c) Gifts. An article acquired abroad by a returning resident and 
imported by him to be disposed of after importation as his bona fide 
gift is considered to be for the personal use of the returning resident 
and may be included in the exemption.
    (d) Tobacco products and alcoholic beverages. Cigars, cigarettes, 
manufactured tobacco, and alcoholic beverages may be included in the 
exemption to which a returning resident is entitled, with the following 
limits:
    (1) No more than 200 cigarettes and 100 cigars may be included, 
except that in the case of American Samoa, Guam, the Commonwealth of the 
Northern Mariana Islands and the Virgin Islands of the United States the 
cigarette limit is 1,000, not more than 200 of which shall have been 
acquired elsewhere than in such locations;
    (2) No alcoholic beverages shall be included in the case of an 
individual who has not attained the age of 21; and
    (3) No more than 1 liter of alcoholic beverages may be included, 
except that:
    (i) An individual returning directly or indirectly from American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands or the 
Virgin Islands of the United States may include in the exemption not 
more than 5 liters of alcoholic beverages, not more than 1 liter of 
which shall have been acquired elsewhere than in such locations and not 
more than 4 liters of which shall have been produced elsewhere than in 
such locations; and
    (ii) An individual returning directly from a beneficiary country as 
defined in Sec. 10.191(b)(1) of this chapter may include in the 
exemption not more than 2 liters of alcoholic beverages if at

[[Page 145]]

least 1 liter is the product of one or more beneficiary countries.
    (e) Exemption not applicable. The exemption does not apply to 
articles intended for sale or acquired on commission, i.e., for the 
account of another person, with or without compensation for the service 
rendered. Articles acquired on one journey and left in a foreign country 
cannot be allowed the exemption accruing upon the return of the resident 
from a subsequent journey.
    (f) Remainder not applicable to subsequent journey. A returning 
resident who has received a total exemption of less than the $400, $600, 
or $1,200 maximum in connection with his return from one journey is not 
entitled to apply the unused portion of that maximum amount to articles 
acquired abroad on a subsequent journey.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 80-179, 45 FR 45580, July 7, 1980; T.D. 86-
118, 51 FR 22516, June 20, 1986; T.D. 89-1, 53 FR 51264, Dec. 21, 1988; 
T.D. 97-75, 62 FR 46441, Sept. 3, 1997]



Sec. 148.34  Family grouping of exemptions for articles acquired abroad.

    (a) Grouping of exemptions. Each member of a family is entitled to 
the $400, $600, or $1,200 exemption for articles acquired abroad, 
subject to the conditions prescribed in this subpart. When members of a 
family residing in one household travel together on their return to the 
United States, the $400, $600, or $1,200 exemption to which the several 
members of the family may be entitled may be grouped and allowed without 
regard to which member of the family is the owner of the articles. 
However, a group exemption shall not include an exemption for a family 
member not entitled to it in his own right, nor shall a group exemption 
be applied to any property of such a member. The exemption of a family 
member who has not attained the age of 21 shall not be applied under the 
group exemption to alcoholic beverages. No exemptions allowable to a 
resident servant accompanying the family shall be included in the family 
grouping.
    (b) Members of a family residing in one household. The term 
``members of a family in one household'' shall include all persons, 
regardless of age, who:
    (1) Are related by blood, marriage, or adoption;
    (2) Lived together in one household at their last permanent 
residence; and
    (3) Intend to live together in one household after their arrival in 
the United States.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.35  Length of stay for exemption of articles acquired abroad.

    (a) Required for allowance of $400, $600, or $1,200 exemption. 
Except as otherwise provided in this paragraph or in paragraph (b) of 
this section, the $400, $600, or $1,200 exemption for articles acquired 
abroad shall not be allowed unless the returning resident has remained 
beyond the territorial limits of the United States for a period of not 
less than 48 hours. The $400 exemption may be allowed on articles 
acquired abroad by a returning resident arriving directly from Mexico 
without regard to the length of time the person has remained outside the 
territorial limits of the United States.
    (b) Not required for allowance of $1,200 exemption on return from 
Virgin Islands. The $1,200 exemption applicable in the case of the 
arrival of a returning resident directly or indirectly from the Virgin 
Islands of the United States may be allowed without regard to the length 
of time such person has remained outside the territorial limits of the 
United States.
    (c) Computation of time. The 48-hour period a returning resident 
must have completed abroad to be entitled to an exemption shall be 
computed exactly. For example, a resident leaving United States 
territory at 1:30 p.m. on June 1 would complete the 48-hour period at 
1:30 p.m. on June 3.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.36  Frequency of allowance of exemption for articles acquired 
abroad.

    (a) 30-day period. The $400, $600, or $1,200 exemption for articles 
acquired

[[Page 146]]

abroad shall not be granted to a returning resident who has taken 
advantage of such exemption within the 30-day period immediately 
preceding his return to the United States. The date of the returning 
resident's latest prior arrival on which he declared articles acquired 
abroad for allowance of the $400, $600, or $1,200 exemption shall be 
deemed the date he took advantage of the applicable exemption.
    (b) Computation of time. The 30-day period immediately preceding the 
resident's return shall be computed by excluding the day of arrival and 
counting backward 30 days. For example, in the case of an arrival on May 
28, the resident would not be entitled to the $400, $600, or $1,200 
exemption if he had taken advantage of such exemption on or after the 
preceding April 28.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.37  Replacement of unsatisfactory articles acquired abroad.

    (a) Free entry of replacement articles. An article furnished by a 
foreign supplier to replace a like article of comparable value 
previously exempted from duty under the $400, $600, or $1,200 exemptions 
for articles acquired abroad shall be allowed free entry if the original 
article is found by the importer to be unsatisfactory and the procedures 
provided by paragraph (b) of this section are followed. In any case in 
which the importer has failed to follow these procedures, the port 
director may allow free entry of the replacement article if he is 
satisfied that the unsatisfactory article was timely exported and that 
the failure to comply with the procedures of paragraph (b) of this 
section was due to inadvertence or lack of experience in Customs matters 
and was without willful intent to avoid Customs supervision.
    (b) Procedure for replacement. Any article previously exempted from 
duty under the $400, $600, or $1,200 exemptions found by the importer to 
be unsatisfactory shall be returned to Customs custody and exported 
under Customs supervision at the expense of the importer within 60 days 
after its importation. A certificate of registration on Customs Form 
4455 shall be issued to the importer with instructions as to its use 
when the unsatisfactory article is exported for replacement under the 
provisions of subheading 9804.00.75, Harmonized Tariff Schedule of the 
United States.
    (c) Articles found damaged upon declaration. The requirement that 
the original article be exported under Customs supervision does not 
apply when a duplicate article is furnished by a foreign supplier as a 
replacement for an article declared for entry under the $400, $600, or 
$1,200 exemption and found by the Customs inspector or other examining 
officer to be so damaged as to constitute a nonimportation (Sec. 158.11 
of this chapter). In such a case, Customs Form 4455 shall be issued to 
the importer at the time the determination of nonimportation is made and 
the duplicate replacement shall be considered to have been acquired 
abroad for the purposes of the $400, $600, or $1,200 exemption 
provision, provided no charge is made to the importer for the duplicate 
replacement.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 89-1, 53 FR 51264, Dec. 21, 1988; T.D. 97-75, 
62 FR 46442, Sept. 3, 1997]



Sec. 148.38  Sale of articles acquired abroad.

    An article brought in under the $400, $600, or $1,200 exemption for 
articles acquired abroad for personal or household use and subsequently 
sold is not dutiable or subject to forfeiture by reason of the sale if 
the returning resident actually acquired and imported the article for 
his bona fide personal or household use and not for sale.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 86-118, 51 FR 
22516, June 20, 1986; T.D. 97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.39  Rented automobiles.

    (a) Importation for temporary period. An automobile rented by a 
resident of the United States while abroad may be brought into the 
United States by or on behalf of such resident for a temporary period 
not to exceed 30 days under subheading 9804.00.60, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), without payment 
of duty. The automobile shall be used for the transportation of

[[Page 147]]

the resident and that of his family and guests, and for such incidental 
carriage of articles as may be appropriate to his personal use of the 
automobile. No entry or security for exportation shall be required.
    (b) Unauthorized use or failure to export. If any automobile 
exempted from duty under subheading 9804.00.60, HTSUS (19 U.S.C. 1202), 
is used otherwise than for the purpose expressed or is not returned 
abroad within 30 days, without prior payment to a port director of the 
duty which would have been payable at the time of entry if entered 
without benefit of the exemption, the automobile or its value (to be 
recovered from the importer) shall be subject to forfeiture.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]



                  Subpart E_Exemptions for Nonresidents



Sec. 148.41  Articles carried through the United States.

    An arriving nonresident who is in transit to a place outside U.S. 
Customs territory may take with him through U.S. Customs territory for 
carriage to such place articles not exceeding $200 in aggregate value 
(including not more than 4 liters of alcoholic beverages) without the 
payment of duty or internal revenue taxes as provided in subheading 
9804.00.40, Chapter 98, U.S. Note 3, Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202).

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49788, Oct. 25, 1978; T.D. 89-1, 53 FR 51264, Dec. 21, 1988; T.D. 97-82, 
62 FR 51771, Oct. 3, 1997]



Sec. 148.42  Personal effects.

    (a) Exemption. A nonresident arriving in the United States, 
regardless of age, is entitled under subheading 9804.00.20, and Chapter 
98, U.S. Note 3, Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202), to entry free of duty and internal revenue tax for his 
wearing apparel, articles of personal adornment, toilet articles, and 
similar personal effects. ``Similar personal effects'' include all 
articles intended and appropriate for the personal use of the 
nonresident while traveling, such as hunting and fishing equipment, 
wheelchairs for invalids or crippled persons, pet and hunting dogs, and 
the like.
    (b) Application of exemption. The exemption applies only to articles 
which were actually owned by the nonresident and in his possession 
abroad at the time of, or prior to, his departure for the United States. 
The articles must be appropriate for the personal use of the 
nonresident, and intended only for such use and not as a gift for 
another person nor for sale.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51264, Dec. 21, 1988]



Sec. 148.43  Tobacco products and alcoholic beverages.

    (a) For personal use. Fifty cigars, or 200 cigarettes, or 2 
kilograms of smoking tobacco, and not exceeding 1 liter of alcoholic 
beverages may be passed free of duty and internal revenue tax under 
subheading 9804.00.25 and Chapter 98, U.S. Note 3, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), when brought in 
by an adult nonresident for his personal use, and not for commercial use 
or to be given to another person. This exemption for tobacco products 
may be applied proportionately. The exemption may be applied to more 
than one kind of alcoholic beverages but not to an aggregate volume of 
more than 1 liter for one adult nonresident.
    (b) For gifts. A nonresident who is allowed the $100 gift exemption 
(see Sec. 148.44) may include not more than 100 cigars under such 
exemption from duty and internal revenue tax, provided the cigars 
accompany him and are to be disposed of only as bona fide gifts.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49789, Oct. 25, 1978; T.D. 80-19, 45 FR 45580, July 7, 1980; T.D. 89-1, 
53 FR 51264, Dec. 21, 1988]



Sec. 148.44  Gifts.

    (a) Exemption. An arriving nonresident who intends to remain in the 
United States for not less than 72 hours is entitled to claim as free of 
duty and internal revenue tax under subheading 9804.00.30 and Chapter 
98, U.S. Note 3, Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202), articles

[[Page 148]]

not over $100 in aggregate value (not including alcoholic beverages and 
cigarettes, but including not more than 100 cigars) which accompany him 
and are to be disposed of by him as bona fide gifts. See Sec. 148.43(b) 
for limitations on cigars under this exemption.
    (b) Frequency of allowance. The exemption for gifts may be allowed 
only if the nonresident has not claimed the exemption within the 
immediately preceding 6 months.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49789, Oct. 25, 1978; T.D. 89-1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.45  Vehicles and other conveyances.

    Nonresidents are entitled to entry free of duty and internal revenue 
tax under subheading 9804.00.35 and Chapter 98, U.S. Note 3, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), for automobiles, 
trailers, aircraft, motorcycles, bicycles, baby carriages, boats, horse-
drawn conveyances, horses, and similar means of transportation and the 
usual equipment accompanying them, if such articles are imported in 
connection with the arrival of the nonresident to be used in the United 
States only for the transportation of the nonresident, his family and 
guests, and such incidental carriage of articles as may be appropriate 
to his personal use of the conveyance.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51265, Dec. 21, 1988]



Sec. 148.46  Sale of exempted articles.

    (a) Sale resulting in forfeiture. The following articles or their 
value (to be recovered from the importer) upon their sale, shall be 
subject to forfeiture in accordance with the provisions of Chapter 98, 
Subchapter IV, U.S. Note 1, HTSUS (19 U.S.C. 1202), unless the procedure 
set forth in paragraph (b) of this section is followed:
    (1) Any jewelry or similar articles of personal adornment having an 
aggregate value of $300 or more which have been allowed an exemption 
under Sec. 148.42, if sold within 3 years of the date of importation.
    (2) Any conveyance or its equipment allowed an exemption under Sec. 
148.45, if sold within 1 year after the date of importation.
    (b) Procedure permitting sale. Articles described in paragraph (a) 
of this section may be sold if, prior to the time of sale, payment is 
made to a port director of the duty which would have been payable at the 
time of entry if the article had been entered without the benefit of the 
applicable exemption.
    (c) Permissible sales. A sale pursuant to a judicial order or in 
liquidation of the estate of a decedent is not a basis for any liability 
for duty or forfeiture.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51265, Dec. 21, 1988]



                       Subpart F_Other Exemptions



Sec. 148.51  Special exemption for personal or household articles.

    (a) Application of exemption. The exemption from duty and internal 
revenue tax contemplated by section 321(a)(2)(B), Tariff Act of 1930, as 
amended (19 U.S.C. 1321(a)(2)(B)), may be applied to articles for his 
personal or household use including gifts, but not for any business or 
commercial use, accompanying:
    (1) A nonresident arriving in the United States who is not entitled 
to an exemption for gifts under subheading 9804.00.30 Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202) (see Sec. 
148.44); or
    (2) A returning resident who is not entitled to the $400, $600, or 
$1,200 exemption for articles acquired abroad under subheading 
9804.00.65, 9804.00.70 or 9804.00.72, HTSUS (see Subpart D of this 
part).
    (b) Limitations. No article accompanying a person arriving in the 
United States shall be exempted from duty or internal revenue tax under 
section 321(a)(2)(B), Tariff Act of 1930, as amended, if any article 
accompanying such person is subject to duty or tax by reason of the 
following limitations on the application of this exemption:
    (1) Value of articles. The exemption shall be allowed only when the 
aggregate fair retail value of all articles not otherwise entitled to an 
exemption does not exceed $200.
    (2) Articles subject to internal revenue tax. The exemption shall 
not be applied

[[Page 149]]

to articles subject to internal revenue tax other than:
    (i) Cigarettes not in excess of 50;
    (ii) Cigars not in excess of 10;
    (iii) Alcoholic beverages not in excess of 150 milliliters; or
    (iv) Alcoholic perfumery not in excess of 150 milliliters; or
    (c) Family grouping. Family grouping of the exemption shall not be 
allowed.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-394, 43 FR 
49789, Oct. 25, 1978; T.D. 80-179, 45 FR 45580, July 7, 1980; T.D. 86-
118, 51 FR 22516, June 20, 1986; T.D. 89-1, 53 FR 51265, Dec. 21, 1988; 
T.D. 94-51, 59 FR 30296, June 13, 1994; T.D. 97-75, 62 FR 46442, Sept. 
3, 1997; T.D. 99-64, 64 FR 43267, Aug. 10, 1999]



Sec. 148.52  Exemption for household effects used abroad.

    (a) Exemption. Furniture, carpets, paintings, tableware, books, 
libraries, and other usual household furnishings and effects actually 
used abroad for not less than 1 year by resident or nonresidents, and 
not intended for any other person or for sale may be allowed entry free 
of duty and tax under subheading 9804.00.05, Harmonized Tariff Schedule 
of the United States (19 U.S.C. 1202). Household effects used abroad not 
less than 1 year by a family of which the importer was a resident member 
for not less than 1 year during the period of use may be allowed free 
entry whether or not the importer owned the effects at the time of such 
use. The year of use need not be continuous, nor need it immediately 
precede the time of importation.
    (b) Proof of use. In order to obtain free entry for household 
effects under this section, the use of the effects abroad for 1 year 
must be proven to the satisfaction of the port director. The port 
director, in his discretion, may require evidence of use other than the 
declaration provided for in paragraph (c) of this section.
    (c) Declaration. When household effects are claimed to be free of 
duty a declaration of the owner on Customs Form 3299 shall be required 
to support the claim for free entry. If it is impracticable to produce 
the declaration at the time of entry, the importer may give a bond on 
Customs Form 301, containing the bond conditions set forth in Sec. 
113.62 of this chapter, for the production of the owner's declaration 
within 6 months.
    (d) Arrival of effects more than 10 years after arrival of importer. 
As a general rule, household effects arriving more than 10 years after 
the last arrival of the importer from the country in which the effects 
were used shall not be admitted free of duty under this exemption unless 
the port director is satisfied from the importer's explanation that the 
effects were unavoidably detained beyond the 10-year period. However, in 
no case shall free entry be allowed under this provision when a period 
of 25 years or more has elapsed since the last arrival of the importer 
in the United States from the country in which the effects were used.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 84-213, 49 FR 
41186, Oct. 19, 1984; T.D. 89-1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.53  Exemption for tools of trade.

    (a) Exemption. Professional books, implements, instruments, or tools 
of trade, occupation or employment, may be allowed entry free of duty 
and tax under the provisions of subheading 9804.00.15, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202), for such articles owned 
and used abroad by any person emigrating to the United States, or 
subheading 9804.00.10 for such articles taken abroad by or for the 
account of any person arriving in the United States. The exemption for 
emigrants under subheading 9804.00.15, HTSUS shall not be applied to:
    (1) Theatrical scenery, properties, or apparel;
    (2) Articles for use in any manufacturing establishment;
    (3) Articles for any other person; or
    (4) Articles for sale.
    (b) Declaration. A declaration of the emigrant or returning 
individual on Customs Form 3299 shall be required to support the claim 
of free entry. However, an oral declaration may be accepted from a 
returning individual in lieu of a written declaration for any such 
articles claimed to be free of duty under subheading 9804.00.10, HTSUS 
(19 U.S.C. 1202).

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51265, Dec. 21, 1988]

[[Page 150]]



Sec. 148.54  Exemption for effects of citizens dying abroad.

    (a) Exemption. Articles claimed to be personal and household 
effects, not stock in trade, the title to which is in the estate of a 
citizen of the United States who died abroad may be allowed entry free 
of duty and tax under subheading 9804.00.85, and Chapter 98, U.S. Note 
3, Harmonized Tariff Schedule of the United States (19 U.S.C. 1202).
    (b) Entry. Such effects shall be entered in accordance with the 
provisions of Sec. Sec. 143.11 through 143.16 of this chapter, or if 
the value of such effects does not exceed $250, entry may be permitted 
under the provisions of Sec. Sec. 143.21 through 143.28 of this 
chapter.
    (c) Statement of facts required. The port director shall require in 
connection with the entry the written statement of a person having 
knowledge of the facts or shall otherwise satisfy himself as to the 
citizenship of the deceased owner of the effects at the time of death.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-99, 43 FR 
13061, Mar. 28, 1978; T.D. 89-1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.55  Exemption for articles bearing American trademark.

    (a) Application of exemption. An exemption is provided for 
trademarked articles accompanying any person arriving in the United 
States which would be prohibited entry under section 526, Tariff Act of 
1930, as amended (19 U.S.C. 1526), or section 42 of the Act of July 5, 
1946 (60 Stat. 440; 15 U.S.C. 1124), because the trademark has been 
registered with the U.S. Patent and Trademark Office and recorded with 
Customs. The exemption may be applied to those trademarked articles of 
foreign manufacture bearing a trademark owned by a citizen of, or a 
corporation or association created or organized within, the United 
States when imported for the arriving person's personal use in the 
quantities provided in pararaph (c) of this section. Unregistered and 
unrecorded trademarked articles are not subject to quantity limitation.
    (b) Limitations--(1) 30-day period. The exemption in paragraph (a) 
of this section shall not be granted to any person who has taken 
advantage of the exemption for the same type of article within the 30-
day period immediately prior to his arrival in the United States. The 
date of the person's last arrival on which he claimed this exemption 
shall be considered to be the date he last took advantage of the 
exemption.
    (2) Sale of exempted articles. If an article which has been exempted 
is sold within one year of the date of importation, the article or its 
value (to be recovered from the importer), is subject to forfeiture. A 
sale subject to judicial order or in the liquidation of an estate is not 
subject to the provisions of this paragraph.
    (c) Quantities. Generally, each person arriving in the United States 
may apply the exemption to one article of the type bearing a protected 
trademark. The Commissioner shall determine if a quantity of an article 
in excess of one may be entered and, with the approval of the Secretary 
of the Treasury, publish in the Federal Register a list of types of 
articles and the quantities of each entitled to the exemption. If the 
holder of a protected trademark allows importation of a quantity in 
excess of one of its particular trademarked article, the total of those 
trademarked articles authorized by the trademark holder may be entered 
without penalty.

[T.D. 79-159, 44 FR 31969, June 4, 1979; 44 FR 35208, June 19, 1979, as 
amended by T.D. 91-77, 56 FR 46115, Sept. 10, 1991]



            Subpart G_Crewmember Declarations and Exemptions



Sec. 148.61  Status as crewmembers.

    The following persons arriving in the United States shall not be 
treated as crewmembers:
    (a) Members of the uniformed services of the United States and 
persons in the civil service of the United States engaged in the 
operation of a vessel, vehicle, or aircraft owned by, or under the 
complete control and management of, the United States or any of its 
agencies.
    (b) Persons engaged in the operation of a private or public 
aircraft.
    (c) Persons not connected with the operation, navigation, ownership, 
or

[[Page 151]]

business of a vessel, vehicle or aircraft engaged in international 
traffic.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 76-338, 41 FR 
54167, Dec. 13, 1976]



Sec. 148.62  Declaration and entry of articles by crewmembers.

    (a) Declaration required. Articles which are to be landed by a 
crewmember, including any person traveling on board a vessel, vehicle, 
or aircraft engaged in international traffic who is returning from a 
trip on which he was employed as a crewmember, shall be declared upon 
arrival of the vessel, vehicle, or aircraft in the United States. When 
practicable, the clearance of articles through Customs shall be made and 
permission to unlade obtained before the articles are taken from the 
carrier. However, if no danger to the revenue will result, articles may 
be submitted for examination and clearance to the Customs office on the 
pier or at the landing place.
    (b) Form of declaration--(1) Oral declaration. A crewmember may be 
permitted to make an oral declaration and entry if all articles he has 
to declare, in addition to articles for use in port on temporary leave 
for which no entry is required in accordance with Sec. 148.63, may be 
admitted free of duty and tax under section 321(a)(2)(B), Tariff Act of 
1930, as amended (19 U.S.C. 1321(a)(2)(B)) (See Sec. 148.64).
    (2) Written declaration. A written declaration on Customs Form 5129, 
Crewmember's Declaration shall be required in any case in which an oral 
declaration is not permitted. A written declaration may be required in 
any case if necessary to effect prompt and orderly clearance of 
crewmembers and their effects or if deemed necessary to protect the 
revenue.
    (c) Transfer without declaration. Articles belonging to a crewmember 
may be transferred from one carrier to another in international traffic 
without declaration, entry, or assessment of duty if the transfer is 
carried out under the supervision of Customs officers, or by a bonded 
cartman if necessary.
    (d) Entry at port where articles to be landed. Articles in the 
possession of or owned by a crewmember of a character for which entry 
must be made when they are brought into the United States shall be 
entered at the port where the articles are to be landed. However, if the 
crewmember remains on a vessel, vehicle, or aircraft which is to proceed 
to another port of the United States in a movement in which entry of the 
vessel, vehicle, or aircraft will not be required, entry of the articles 
shall be made at the port at which such movement begins.
    (e) Collection of duty and taxes. Any duties and taxes found due 
shall be collected as in the case of arriving passengers.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-99, 43 FR 
13061, Mar. 29, 1978]



Sec. 148.63  Articles for use while on temporary leave.

    (a) Exemption. Articles in the possession of and exclusively for use 
by any crewmember during the trip or voyage, such as necessary clothing, 
toiletries, and purely personal effects, may be landed by such 
crewmember for use on temporary leave without a written declaration or 
entry, and without payment of duty or internal revenue tax under 
subheading 9804.00.80, Harmonized Tariff Schedule of the United States 
(HTSUS) (19 U.S.C. 1202), if the port director is satisfied that:
    (1) The articles are reasonable and appropriate for the crewmember's 
accommodation while on temporary leave, and are to be taken out of the 
United States, except for articles consumed in use;
    (2) The articles are intended exclusively for the crewmember's bona 
fide personal use;
    (3) The quantities are reasonable, depending on the circumstances in 
each particular case; and
    (4) In the case of tobacco products and alcoholic beverages, the 
containers have been opened and the total quantity landed shall not 
exceed 50 cigars, 300 cigarettes, or 2 kilograms of smoking tobacco, or 
a proportionate amount of each, and 1 liter of alcoholic beverages.
    (b) Temporary leave. A crewmember is not considered to be on 
temporary leave from a vessel, vehicle, or aircraft

[[Page 152]]

engaged in international traffic or entitled to the exemption under this 
section upon disembarkation when he is to remain in the confines of a 
pier, terminal, airport, or area immediately adjacent thereto, in order 
to timely embark on the carrier in the course of a continuous journey or 
on a concurrently scheduled arrival and departure.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 80-179, 45 FR 
45580, July 7, 1980; T.D. 89-1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.64  Administrative exemption.

    (a) Application of exemption. The exemption from duty and internal 
revenue tax contemplated by section 321(a)(2)(B), Tariff Act of 1930, as 
amended (19 U.S.C. 1321(a)(2)(B)), may be applied to articles for the 
personal and household use, including gifts, of a crewmember arriving in 
the United States who is not entitled to an exemption under subheading 
9804.00.30, 9804.00.65, 9804.00.70, or 9804.00.72, Harmonized Tariff 
Schedule of the United States (HTSUS) (see Sec. Sec. 148.66(c) and 
148.65). The exemption may be applied when the crewmember is entitled to 
an exemption under subheading 9804.00.80, HTSUS (19 U.S.C. 1202), for 
articles for use while on temporary leave (Sec. 148.63).
    (b) Limitations. No article accompanying a crewmember arriving in 
the United States shall be exempted from duty or internal revenue tax 
under section 321(a)(2)(B), Tariff Act of 1930, as amended, if any 
article accompanying such crewmember is subject to duty or internal 
revenue tax by reason of the following limitations.
    (1) Value of articles. The exemption shall be allowed only when the 
aggregate fair retail value of all articles not otherwise entitled to an 
exemption does not exceed $200.
    (2) Articles subject to internal revenue tax. The exemption shall 
not be applied to any article subject to internal revenue tax in 
addition to any articles allowed an exemption under subheading 
9804.00.80, HTSUS (19 U.S.C. 1202), other than:
    (i) Cigarettes not in excess of 50;
    (ii) Cigars not in excess of 10;
    (iii) Alcoholic beverages not in excess of 150 milliliters; or
    (iv) Alcoholic perfumery not in excess of 150 milliliters 
(Subheading 9805.00.50, HTSUS (19 U.S.C. 1202, 1321)). [T.D. 80-179.].

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 80-179, 45 FR 
45580, July 7, 1980; T.D. 84-149, 49 FR 28699, July 16, 1984; T.D. 89-1, 
53 FR 51265, Dec. 21, 1988; T.D. 94-51, 59 FR 30296, June 13, 1994; T.D. 
97-75, 62 FR 46442, Sept. 3, 1997]



Sec. 148.65  Exemption for resident crewmembers.

    (a) Status as returning resident. A crewmember arriving in a vessel, 
vehicle, or aircraft from a foreign port who is a resident of the United 
States shall be considered a returning resident qualifying for the 
exemptions allowed under Chapter 98, Subchapter IV, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202), and subpart D of this 
part if he permanently leaves the carrier without the intention of 
resuming his employment on the same or any other carrier that is engaged 
in international traffic.
    (b) Statement of declaration. A resident crewmember who claims that 
articles declared by him are entitled to be passed free of duty and tax 
under the returning resident's exemption, shall include a legible 
statement on the declaration, Customs Form 5129, of the basis for his 
claim for entitlement to the resident's exemption.

[T.D. 81-218, 46 FR 42657, Aug. 24, 1981, as amended by T.D. 89-1, 53 FR 
51265, Dec. 21, 1988]



Sec. 148.66  Exemptions for nonresident crewmembers.

    (a) Status as arriving nonresident. A nonresident crewmember will be 
treated as an arriving nonresident for purposes of claiming the 
exemptions allowable under Chapter 98, Subchapter IV, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), and subpart E of 
this part when he permanently leaves his employment with a vessel, 
vehicle, or aircraft at a port in the United States without intention of 
resuming employment on the same or another carrier in international 
traffic. However, a nonresident crewmember shall not be treated as an 
arriving nonresident for this purpose when he departs a carrier for 
temporary leave but retains his employment with the carrier so that he 
will be

[[Page 153]]

going foreign again in the course of his continuing employment (see 
Sec. 148.63).
    (b) Articles carried through the United States. A nonresident 
crewmember, permanently leaving a carrier in a U.S. port to travel as a 
passenger on another carrier which will take him to a place outside the 
United States, who desires to take with him articles not exceeding $200 
in aggregate value (including not more than 4 liters of alcoholic 
beverages) without the payment of duty or internal revenue tax as 
provided in item 812.40 (see Sec. 148.41), may be accorded free entry 
of the articles under the following procedure:
    (1) Declaration and supporting statement. The nonresident crewmember 
shall itemize the articles on his declaration and entry, Customs Form 
5129, required by Sec. 148.62(b)(2), and shall state in writing in 
support of his declaration that:
    (i) He has been finally discharged from the carrier, with the date 
of discharge;
    (ii) He intends to depart from the same or another U.S. port as a 
passenger on another carrier for a place outside U.S. Customs territory; 
and
    (iii) The articles will be taken with him on such carrier and will 
not remain in the United States.
    (2) Allowance by port director. The port director may require 
verification of the crewmember's discharge and a statement as to the 
accuracy of the second and third supporting statements of the crewmember 
from the person in charge of the carrier, the vessel agent, or the port 
captain. If the port director is satisfied that the crewmember's 
statements are correct, the articles may be passed free of duty and 
internal revenue tax under subheading 9808.00.40, HTSUS (19 U.S.C. 
1202).
    (c) Articles to be disposed of as gifts. A nonresident crewmember 
shall itemize on his baggage declaration and entry, Customs Form 5123 or 
5129, required by Sec. 148.62, all articles in his possession for which 
he seeks entry under subheading 9804.00.30, HTSUS (19 U.S.C. 1202), as 
bona fide gifts. The crewmember must be permanently leaving his 
employment on the international carrier for a stay in the United States 
of at least 72 hours before departing for a place outside the United 
States as a passenger.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 78-99, 43 FR 
13061, Mar. 29, 1978; T.D. 78-394, 43 FR 49789, Oct. 25, 1978; T.D. 89-
1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.67  Penalties for failure to declare articles.

    (a) Avoidance of inspection. When articles may be presented to the 
Customs office on the pier or at the landing place for inspection and 
clearance, if the circumstances under which the articles are landed 
indicate an attempt to avoid inspection, the penalties prescribed in 
section 453, Tariff Act of 1930, as amended (19 U.S.C. 1453), shall be 
assessed.
    (b) Articles landed without declaration. Any article landed without 
having been properly declared as provided in Sec. 148.62 shall be 
considered as having been unladen without a permit and the penalties 
provided in 19 U.S.C. 1453 or 19 U.S.C. 1644 and 1644a shall be assessed 
as applicable.
    (c) Articles omitted from declaration. If the declaration does not 
include all the articles landed, the crewmember shall be subject to the 
penalties prescribed in section 497, Tariff Act of 1930 (19 U.S.C. 
1497), with respect to the articles omitted. The penalties prescribed in 
section 453, Tariff Act of 1930, as amended (19 U.S.C. 1453), shall not 
be assessed if any, though not all, of the articles are declared, except 
as provided in paragraph (a) of this section.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 98-74, 63 FR 
51290, Sept. 25, 1998]



  Subpart H_Military and Civilian Employees of the United States, and 
                                Evacuees



Sec. 148.71  Status of persons in service of United States as returning 
residents.

    A person in the service of the United States and members of his 
family arriving in the United States are ordinarily considered returning 
residents for the purpose of Chapter 98, Subchapter IV, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), except that the 
following persons are treated as nonresidents:

[[Page 154]]

    (a) A wife or husband of any person in the service of the United 
States emigrating to the United States, and
    (b) A child born abroad of any person in the service of the United 
States who is arriving in the United States for the first time.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51265, Dec. 21, 1988]



Sec. 148.72  [Reserved]



Sec. 148.73  Baggage on carriers operated by the Department of Defense.

    (a) Declaration. All persons, including crewmembers, entering the 
United States on carriers operated by or for the Department of Defense 
shall execute written baggage declarations.
    (b) Exemptions applicable. Passengers on transports shall be granted 
the applicable exemptions from duty provided for in Chapter 98, 
Subchapter IV, Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202). Members of the Armed Forces of the United States and 
personnel in the civil service of the United States engaged in the 
operation of the vessel shall be accorded the same privilege. Civilian 
officers and crewmembers not in the service of the United States shall 
be subject to the provisions of subpart G of this part with respect to 
exemption from duty.
    (c) Examination of baggage. Baggage on transports shall be examined 
at the port where landed in the same manner as baggage on commercial 
vessels.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 82-213, 48 FR 
46979, Oct. 17, 1983; T.D. 89-1, 53 FR 51265, Dec. 21, 1988]



Sec. 148.74  Exemption on termination of assignment to extended duty 
or on evacuation.

    (a) Exemption. With the limitation on alcoholic beverages and 
tobacco products provided in paragraph (c) of this section, entry free 
of duty and tax under subheading 9805.00.50, Harmonized Tariff Schedule 
of the United States (19 U.S.C. 1202), may be accorded personal and 
household effects of:
    (1) Any person in the service of the United States who returns to 
the United States upon the termination of assignment to extended duty at 
a post or station outside the Customs territory of the United States;
    (2) Members of his family who have resided with him at such post or 
station and are returning upon the termination of his assignment; or
    (3) Any person evacuated to the United States under Government 
orders or instructions.
    (b) The term ``personal effects'' as used in subheading 9805.00.50, 
HTSUS, is not confined to that class of articles described in subheading 
9804.00.20, HTSUS, nor is any period of use, such as prescribed by 
subheading 9804.00.05, HTSUS, applicable to household effects entered 
under subheading 9805.00.50, HTSUS. The privilege of free entry under 
subheading 9805.00.50, HTSUS, does not apply to:
    (1) Articles imported for sale, or for the account of any person not 
specified in subheading 9805.00.50, HTSUS; or
    (2) Articles which have not been in the direct personal possession 
of the claimant, or a member of his household, while abroad.
    (c) Limitation on alcoholic beverages and tobacco products. A total 
of not more than 4 liters of alcoholic beverages and not more than 100 
cigars shall be accorded free entry under subheading 9805.00.50, HTSUS, 
subject to the conditions that:
    (1) These articles accompany the person making the claim for free 
entry upon his arrival in the U.S.;
    (2) Not more than 1 liter of any such alcoholic beverages shall have 
been distilled or otherwise manufactured and bottled in any place other 
than the United States or its possessions;
    (3) Such individual has not concurrently claimed exemption as a 
returning resident under subheading 9804.00.65, 9804.00.70, or 
9804.00.72, HTSUS; and
    (4) Such person, if other than one in the service of the U.S., shall 
have attained the age of 21.
    (d) Termination of assignment to extended duty. The requirement of 
subheading 9805.00.50, HTSUS that the person ``returns to the United 
States upon the termination of assignment to extended duty'' shall be 
considered met upon the necessary proof being submitted that any one of 
the following is applicable:

[[Page 155]]

    (1) The person is returning upon the termination of a tour of duty 
outside the Customs territory of the United States of at least 140 days' 
duration.
    (2) The person is returning after the termination of an assignment 
under permanent change of station orders to duty at a post or station 
outside the Customs territory of the United States, regardless of the 
duration of the duty. A crewmember, including a member of a command, 
serving on a United States naval vessel when it departs from the United 
States on an intended deployment of 120 days or more outside the Customs 
territory of the United States and who continues to serve on the vessel 
until it returns to the United States may be considered as returning 
after the termination of an assignment of duty under permanent change of 
station orders.
    (3) The person is returning to the United States upon the 
termination of a tour of duty at any time after leaving the United 
States for duty of not less than 140 days outside the Customs territory 
of the United States.
    (4) The person, although not returning to the United States, is 
ordered by the Government agency involved from duty at a post or station 
outside the Customs territory of the United States to duty at another 
post or station outside the Customs territory of the United States 
necessitating the return to the United States of his personal and 
household effects.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 80-179, 45 FR 
45580, July 7, 1980; T.D. 89-1, 53 FR 51265, Dec. 21, 1988; T.D. 97-75, 
62 FR 46442, Sept. 3, 1997]



Sec. 148.75  Persons ineligible for exemption on termination of assignment.

    (a) Persons returning from temporary assignment. No person, or 
member of his family, shall be allowed free entry of personal and 
household effects under subheading 9805.00.50, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), where the person 
returns to the United States pursuant to Government orders or 
instructions which authorized him initially to proceed to a foreign post 
or station and return to the United States upon termination of temporary 
duty, except as it may otherwise be deemed proper in accordance with the 
provisions of Sec. 148.74(d) or Sec. 148.76.
    (b) Persons returning on leave or before termination of extended 
duty assignment. A person returning on leave, other than on reemployment 
leave at the termination of assignment to extended duty as defined in 
Sec. 148.74(d), or otherwise returning before the termination of an 
assignment to extended duty outside the Customs territory of the United 
States, with or without orders covering the return, is not eligible for 
an exemption under subheading 9805.00.50, HTSUS (19 U.S.C. 1202).
    (c) Person returning on temporary duty assignment. A person 
returning to the United States under orders on temporary duty assignment 
at the termination of which he is returned to his duty station abroad to 
resume his regular duties is not regarded as returning to the United 
States at the termination of extended duty outside the Customs territory 
of the United States and is not eligible for an exemption under 
subheading 9805.00.50, HTSUS (19 U.S.C. 1202).

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51266, Dec. 21, 1988]



Sec. 148.76  Waiver of requirements or limitations.

    In any case in which the limitation on the quantity of alcoholic 
beverages and tobacco products which may be exempted from duty and tax 
under Sec. 148.74(c) or the failure of the person to meet the 
requirements that he be returning upon the termination of assignment to 
``extended duty,'' as explained in Sec. 148.74(d), will cause undue 
hardship to the person through no fault of his own, but rather because 
of the nature of his assignment or other hardship circumstances, the 
Commissioner of Customs, upon receipt of a request from the Government 
agency involved, may waive the limitation or the requirement, as the 
case may be, if he deems such waiver warranted by the facts.

[[Page 156]]



Sec. 148.77  Entry of effects on termination of assignment to extended 
duty, or on evacuation.

    (a) General procedure. All articles for which free entry is claimed 
under subheading 9805.00.50, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), shall be entered or withdrawn in accordance 
with the requirements prescribed by the Tariff Act of 1930, as amended. 
Port directors shall be satisfied in all cases that the articles for 
which free entry is claimed under subheading 9805.00.50, HTSUS, are 
personal and household effects of the importer entitled to the benefits 
of item 817.00, particularly in those cases where the quantity of 
effects imported may appear to be unreasonable for personal or household 
use. No invoice shall be required for articles accorded free entry under 
this provision.
    (b) Declaration and entry--(1) Person entitled to exemption. 
Declaration and entry for articles claimed to be exempt from duty and 
tax under subheading 9805.00.50, HTSUS (19 U.S.C. 1202), may be made on 
Customs Form 3299, or Department of Defense Form (DD) 1252 when entry is 
made in the name of the person who is entitled to the benefits of the 
exemption. The date of the person's last departure from the United 
States shall be indicated on the declaration and entry.
    (2) Designated official. Customs Form 3299 or Department of Defense 
Form 1252 executed on behalf of the owner of unaccompanied personal and 
household effects by either a United States Dispatch Agent or a 
designated responsible military official in his own name, may be 
accepted by the Customs officer as the declaration and entry if there is 
a valid reason evident from the owner's travel orders or information at 
hand why the United States Government agency concerned is unable to 
present Department of Defense Form (DD) 1252 or Customs Form 3299 
executed by the owner. The date of the owner's last departure from the 
United States need not be indicated on the form. The following statement 
shall be added across the face or to the back of Customs Form 3299 or 
Department of Defense Form 1252.

    This form is completed on behalf of (Name of Government employee) 
Travel orders and information on hand in this office show that the named 
person has met all requirements of section 148.74, Customs Regulations, 
and is entitled to the benefits of subheading 9805.00.50, Harmonized 
Tariff Schedule of the United States. The shipment imported consists of 
nothing but personal and household effects of the named person, which 
effects are not imported for sale or as an accommodation for others.

    (c) Verification of claim for exemption--(1) By travel orders. The 
declaration and entry shall be verified by the Customs officer by an 
inspection of the owner's travel orders. If the port director accepts an 
inspection of the owner's travel orders as evidence that the effects 
were brought into the United States within the requirements of 
subheading 9805.00.50, the owner's travel orders shall be identified on 
the entry, which shall be handled like a free baggage declaration.
    (2) By other evidence. The declaration and entry may be verified by 
other evidence which satisfies the port director that the effects were 
brought into the United States in connection with:
    (i) The person's return to the United States upon the termination of 
assignment to extended duty, as explained in Sec. 148.74(d);
    (ii) The return of members of his family who have resided with him 
at his post or station upon the termination of his assignment; or
    (iii) The evacuation of a person to the United States under 
Government orders or instructions.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 82-145, 47 FR 
35478, Aug. 16, 1982; T.D. 85-123, 50 FR 29955, July 23, 1985; T.D. 89-
1, 53 FR 51266, Dec. 21, 1988]



      Subpart I_Personnel of Foreign Governments and International 
      Organizations and Special Treatment for Returning Individuals



Sec. 148.81  General provisions.

    (a) Reciprocal privileges. The privileges provided for in Sec. Sec. 
148.81 through 148.86 and Sec. 148.90 of this chapter shall be accorded 
only if reciprocal privileges are granted by the foreign government 
involved to U.S. personnel of comparable status.

[[Page 157]]

    (b) Baggage and effects. The term ``baggage and effects,'' as used 
in this subpart includes all articles which were in the possession of a 
person abroad, and are being imported in connection with his arrival, 
and which are intended for his bona fide personal or household use. It 
does not include articles imported as an accommodation to others or for 
sale or other commercial use.
    (c) Aliens. The privileges provided in this subpart shall be 
accorded only to alien representatives, officers, employees, and members 
of the armed forces of foreign governments and designated public 
international organizations.
    (d) Internal revenue tax. Any article exempted from the payment of 
duty under this subpart shall be exempt also from the payment of any 
internal revenue tax imposed upon or by reason of importation.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 73-227, 38 FR 
22548, Aug. 22, 1973]



Sec. 148.82  Diplomatic, consular, and other privileged personnel.

    (a) Inviolability of the person of diplomatic personnel. The person 
of the representatives of foreign governments and members of their 
families set forth below shall be free from arrest, search, or 
detention:
    (1) Ambassadors, ministers, charg[eacute]s d'affaires, secretaries, 
counselors, attach[eacute]s of foreign embassies and legations, and 
other heads of diplomatic missions or members of the diplomatic staffs 
of such missions, accredited to the United States or en route between 
other countries to which accredited and their own countries.
    (2) Members of the families forming part of the households of the 
diplomatic personnel listed in the preceding subparagraph, who are 
accompanying them or traveling separately to join them incidental to 
their official travel, excluding those members of families who are U.S. 
nationals.
    (3) Members of the administrative and technical staffs of diplomatic 
missions accredited to the United States and members of their families 
forming part of their household, all of whom are not nationals or 
permanent residents of the United States who are accompanying them or 
traveling separately to join them incidental to their official travel.
    (4) Diplomatic and consular couriers.
    (b) Exemption for baggage and effects and admission without entry. 
The baggage and effects of the following representatives of foreign 
governments shall be admitted free of duty without the filing of an 
entry, upon the request of the Department of State and appropriate 
instructions from the United States Customs Service in each instance:
    (1) Ambassadors, ministers, charg[eacute]s d'affaires, secretaries, 
counselors, attach[eacute]s of embassies and legations, and other 
members of the diplomatic staffs of such missions accredited to the 
United States or en route to or from other countries to which assigned, 
as well as recognized consular officers, and the immediate families, 
suites, and servants of all the above under subheading 9806.00.05, 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 
1202).
    (2) Members of the administrative and technical staffs of diplomatic 
missions and members of their families forming part of their households, 
all of whom are not nationals or permanent residents of the United 
States under subheading 9806.00.05, Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202). Unless more extensive privileges are 
provided in treaties or special agreements between the United States and 
the foreign country concerned, this privilege is limited to baggage and 
effects imported at the time of first installation.
    (3) Consular employees who are not nationals or permanent residents 
of the United States. Unless more extensive privileges are provided in 
treaties or special agreements between the United States and the foreign 
country concerned, this privilege is limited to articles imported at the 
time of first installation.
    (4) Other high officials of foreign governments and such 
distinguished foreign visitors as may be designated by the Department of 
State, and their immediate families under subheading 9806.00.25, HTSUS.
    (5) Foreign government personnel entitled to privileges under 
statutes or

[[Page 158]]

treaties under subheading 9806.00.30, HTSUS.
    (6) Diplomatic couriers, limited to accompanying baggage and 
effects.
    (c) Absence of special request. In the absence of special request 
from the Department of State prior to the arrival of representatives of 
foreign governments enumerated in paragraph (b)(1) of this section, 
their immediate families as well as accompanying suites and servants, 
and diplomatic couriers, their baggage and effects may be admitted free 
of duty without entry upon presentation of their credentials or other 
proof of their identity.
    (d) Delay in arrival of baggage or effects. If by accident or 
unavoidable delay in shipment the baggage or other effects of a person 
entitled to the privileges of this section shall arrive after him upon 
satisfactory proof of ownership, such baggage or effects may be passed 
free of duty without entry.
    (e) Inspection of baggage--(1) Exemption for representatives of 
foreign governments. The personal baggage of the following 
representatives of foreign governments and their families is ordinarily 
exempt from inspection:
    (i) Ambassadors, ministers, charg[eacute]s d'affaires, secretaries, 
counselors, attach[eacute]s of foreign embassies or legations, and other 
members of the diplomatic staffs of such missions, who are accredited to 
the United States or en route between other countries to which 
accredited and their own countries and members of their families forming 
part of their household who are not nationals of the United States.
    (ii) Consular officers recognized by the United States and members 
of their families forming part of their household who are not nationals 
or permanent residents of the United States, provided the baggage 
accompanies them.
    (iii) Diplomatic couriers, provided the baggage accompanies them.
    (2) Conditions permitting inspection. The personal baggage of 
representatives of foreign governments listed in paragraph (e)(1) of 
this section and members of their families may be inspected if there is 
serious reason to believe that it contains:
    (i) Articles other than those for the personal use of such persons 
or for the use of their establishments or for official mission use.
    (ii) In the case of consular officers and their families, articles 
intended for consumption in excess of the quantities necessary for 
direct use by the person concerned.
    (iii) Articles which are absolutely or conditionally prohibited 
importation or exportation under the laws or regulations of the United 
States, or which are subject to the quarantine laws or regulations of 
the United States.
    (3) Presence of foreign representative. When inspection of personal 
baggage is permitted under paragraph (e)(2) of this section, the 
inspection shall take place only in the presence of the affected 
representative of a foreign government, or his authorized agent.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51266, Dec. 21, 1988]



Sec. 148.83  Diplomatic and consular bags.

    (a) Diplomatic bags. The contents of diplomatic bags are restricted 
to diplomatic documents and articles intended exclusively for official 
use and packages constituting the diplomatic bag must bear visible marks 
of their character. Diplomatic bags shall not be opened or detained nor 
shall they be subject to duty or entry.
    (b) Consular bags. Consular bags must bear visible external marks of 
their character and their contents are restricted to official 
correspondence and documents or articles intended exclusively for 
official use. Consular bags shall not be subject to duty and ordinarily 
shall not be opened or detained. However, if Customs officers have 
serious reason to believe that a consular bag contains other than 
permissible materials, they may request that the bag be opened in their 
presence by an authorized representative of the foreign government 
concerned. If this request is refused, the consular bag shall be 
returned to its place of origin.



Sec. 148.84  Special treatment for returning individuals.

    (a) Except as otherwise provided by law, an individual returning to 
the United States from abroad:

[[Page 159]]

    (1) Shall not have his or her baggage and effects admitted free of 
duty without entry.
    (2) Shall not be entitled to expedited Customs examination and 
clearance of his or her baggage and effects unless the port director 
finds:
    (i) That the individual:
    (A) Is seriously ill or infirm;
    (B) Was summoned by news of affliction or disaster; or
    (C) Is accompanying the body of a deceased relative; or
    (ii) That a special circumstance exists which warrants expedited 
examination and clearance.
    (b) For purposes of this section, the term ``baggage and effects'' 
means any article which was in the possession of the individual while 
abroad, is being imported in connection with his or her arrival, and is 
intended for his or her bona fide personal or household use. This term 
does not include any article imported as an accommodation to others or 
for sale or other commercial use.

[T.D. 78-394, 43 FR 49789, Oct. 25, 1978]



Sec. 148.85  Subsequent importations for the personal or family use of 
diplomatic, consular and other privileged personnel.

    The privilege of importing free of duty and without the filing of 
any entry articles for personal or family use, but not as an 
accommodation for others or for sale or other commercial use, shall be 
granted upon the request of the Department of State and upon appropriate 
instructions from the United States Customs Service in each instance, to 
the following:
    (a) Ambassadors, ministers, charg[eacute]s d'affaires, secretaries, 
counselors and attach[eacute]s of foreign embassies and legations 
accredited to the United States under subheading 9806.00.40, Harmonized 
Tariff Schedule of the United States (HTSUS) (19 U.S.C. 1202);
    (b) Other representatives, officers and employees of foreign 
governments, under subheading 9806.00.50, HTSUS; and
    (c) Other persons designated pursuant to statute or pursuant to 
treaties between the United States and the countries which they 
represent, under subheading 9806.00.55, HTSUS.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51266, Dec. 21, 1988]



Sec. 148.86  Articles for official use of representatives of foreign 
governments and public international organizations.

    Office supplies and equipment and other articles for the official 
use of members and attaches of foreign embassies and legations, consular 
officers, and other representatives of foreign governments or of 
personnel of public international organizations, may be admitted free of 
duty under subheading 9809.00.20, Harmonized Tariff Schedule of the 
United States, without the filing of an entry, upon the request of the 
Department of State.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 82-145, 47 FR 
35478, Aug. 16, 1982; T.D. 89-1, 53 FR 51266, Dec. 21, 1988]



Sec. 148.87  Officers and employees of, and representatives to public 
international organizations.

    (a) Exemption for baggage and effects. The baggage and effects of 
the alien officers and employees of, or representatives of foreign 
governments, to the organizations designated by the President as public 
international organizations pursuant to section 1 of the International 
Organizations Immunities Act (22 U.S.C. 288), and the baggage and 
effects of their families, suites, and servants, shall be admitted free 
of duty and without entry under subheading 9806.00.15, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202), but only upon the 
receipt in each instance of instructions from the United States Customs 
Service issued at the request of the Department of State.
    (b) Designated public international organizations. The President, by 
virtue of the authority vested in him by section 1 of the International 
Organizations Immunities Act of December 29, 1945 (22 U.S.C. 288), has 
designated certain organizations as public international organizations 
entitled to the free entry privileges of that statute. The following is 
a list of the public international organizations currently entitled to 
such free entry privileges and

[[Page 160]]

the Executive orders by which they were designated:

------------------------------------------------------------------------
                                       Executive
             Organization                Order             Date
------------------------------------------------------------------------
African Development Bank.............      12403  Feb. 8, 1983.
African Development Fund.............      11977  Mar. 14, 1977.
Asian Development Bank...............      11334  Mar. 7, 1967.
Border Environment Cooperation             12904  Mar. 16, 1994.
 Commission.
Caribbean Organization...............      10983  Dec. 30, 1961.
Commission for Environmental               12904  Mar. 16, 1994.
 Cooperation.
Commission for Labor Cooperation.....      12904  Mar. 16, 1994.
Commission for the Study of                12567  Oct. 2, 1986.
 Alternatives to the Panama Canal.
Council of Europe in Respect of the        13240  Dec. 18, 2001.
 Group of States Against Corruption
 (GRECO).
Customs Cooperation Council..........      11596  June 5, 1971.
European Bank for Reconstruction and       12766  June 18, 1991.
 Development.
European Space Agency (formerly the        12766  June 18, 1991.
 European Space Research Organization
 (ESRO)).
Food and Agriculture Organization....       9698  Feb. 19, 1946.
Great Lakes Fishery Commission.......      11059  Oct. 23, 1962.
Hong Kong Economic and Trade Offices.      13052  June 30, 1997.
Inter-American Defense Board.........      10228  Mar. 26, 1951.
Inter-American Development Bank......      10873  Apr. 8, 1960.
Inter-American Institute of                 9751  July 11, 1946.
 Agricultural Sciences.
Inter-American Investment Corporation      12567  Oct. 2, 1986.
Inter-American Statistical Institute.       9751   Do.
Inter-American Tropical Tuna               11059  Oct. 23, 1962.
 Commission.
Intergovernmental Maritime                 10795  Dec. 13, 1958.
 Consultative Organization.
International Atomic Energy Agency...      10727  Aug. 31, 1957.
International Bank for Reconstruction       9751  July 11, 1946.
 and Development.
International Boundary and Water           12467  Mar. 2, 1984.
 Commission, United States & Mexico.
International Centre for Settlement        11966  Jan. 19, 1977.
 of Investment Disputes.
International Civil Aviation                9863  May 31, 1947.
 Organization.
International Coffee Organization....      11225  May 22, 1965.
International Committee of the Red         12643  June 23, 1988.
 Cross.
International Cotton Advisory               9911  Dec. 19, 1947.
 Committee.
International Cotton Institute.......      11283  May 27, 1966.
International Criminal Police              12425  June 16, 1983.
 Organization (INTERPOL)--Limited
 privileges..
                                           12971  Sep. 15, 1995.
International Development Association      11966  Jan. 19, 1977.
International Development Law              12842  Mar. 29, 1993.
 Institute.
International Fertilizer Development       11977  Mar. 14, 1977.
 Center.
International Finance Corporation....      10680  Oct. 2, 1956.
International Food Policy Research         12359  Apr. 22, 1982.
 Institute--Limited privileges only.
International Fund for Agricultural        12732  Oct. 31, 1990.
 Development.
International Hydrographic Bureau....      10769  May 29, 1958.
International Joint Commission--            9972  June 25, 1948.
 United States and Canada.
International Labor Organization.....       9698  Feb. 19, 1946.
International Maritime Satellite           12238  Sept. 12, 1980.
 Organization.
International Monetary Fund..........       9751  July 11, 1946.
International Pacific Halibut              11059  Oct. 23, 1962.
 Commission.
International Secretariat for              11363  July 20, 1967.
 Volunteer Service.
International Telecommunications           11966  Jan. 19, 1977.
 Satellite Organization (INTELSAT).
International Telecommunication Union       9863  May 31, 1947.
International Union for Conservation       12986  Jan. 18, 1996.
 of Nature and Natural Resources--
 Limited privileges.
International Wheat Advisory                9823  Jan. 24, 1947.
 Committee (International Wheat
 Council).
Interparliamentary Union.............      13097  Aug. 7, 1998.
Israel-United States Binational            12956  Mar. 13, 1995.
 Industrial Research and Development
 Foundation.
Korean Peninsula Energy Development        12997  Apr. 1, 1996.
 Organization.
Multilateral Investment Guarantee          12647  Aug. 2, 1988.
 Agency.
Multinational Force and Observers....      12359  Apr. 22, 1982.
North American Development Bank......      12904  Mar. 16, 1994.
North Pacific Anadromous Fish              12895  Jan. 26, 1994.
 Commission.
North Pacific Marine Science               12894  Jan. 26, 1994.
 Organization.
Organization for Economic Cooperation      10133  June 27, 1950.
 and Development [formerly
 Organization for European Economic
 Cooperation].
Organization for the Prohibition of        13049  June 11, 1997.
 Chemical Weapons..
Organization of African Unity (OAU)..      11767  Feb. 19, 1974.
Organization of American States......      10533  June 3, 1954.
Organization of Eastern Caribbean          12669  Feb. 20, 1989.
 States.
Pacific Salmon Commission............      12567  Oct. 2, 1986.
Pan American Health Organization           10864  Feb. 18, 1960.
 (includes the Pan American Sanitary
 Bureau).
Preparatory Commission of the              10727  Aug. 31, 1957.
 International Atomic Energy Agency.

[[Page 161]]

 
Provisional Intergovernmental              10335  Mar. 28, 1952.
 Committee for the Movement of
 Migrants from Europe (now known as
 the Intergovernmental Committee for
 European Migration).
South Pacific Commission.............      10086  Nov. 25, 1949.
United International Bureau for the        11484  Sept. 29, 1969.
 Protection of Intellectual Property.
United Nations.......................       9698  Feb. 19, 1946.
United Nations Educational,                 9863  May 31, 1947.
 Scientific, and Cultural
 Organization.
United Nations Industrial Development      12628  Mar. 8, 1988.
 Organization.
Universal Postal Union...............      10727  Aug. 31, 1957.
World Health Organization............      10025  Dec. 30, 1948.
World Intellectual Property                11866  June 18, 1975.
 Organization.
World Meteorological Organization....      10676  Sept. 1, 1956.
World Tourism Organization...........      12508  Mar. 22, 1985.
World Trade Organization.............      13042  Apr. 9, 1997.
------------------------------------------------------------------------


[T.D. 73-27, 38 FR 2449, Jan. 26, 1973]

    Editorial Note: For Federal Register citations affecting Sec. 
148.87, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec. 148.88  Certain representatives to and officers of the United Nations 
and the Organization of American States.

    (a) Exemption for baggage and effects and admission without entry. 
At the request of the Department of State and upon appropriate 
instructions from the United States Customs Service in each instance, 
the privilege of admission free of duty without the filing of an entry 
may be extended to the baggage and effects of the following alien 
representatives, officers, and members of the staff of the United 
Nations and the Organization of American States, and their personal 
baggage is ordinarily exempt from inspection, subject to Sec. 
148.82(e)(2):
    (1) Every person designated by a United Nations member nation as the 
principal resident representative to the United Nations of such member 
or as a resident representative with the rank of ambassador or minister 
plenipotentiary and members of their families;
    (2) Such resident members of their staffs as may be agreed upon 
between the Secretary-General of the United Nations, the Government of 
the United States, and the Government of the United Nations member 
concerned and members of their families;
    (3) Every person designated by a United Nations member of a 
specialized United Nations agency as its principal resident 
representative, with the rank of ambassador or minister plenipotentiary 
at the headquarters of such agency in the United States and members of 
their families;
    (4) Such other principal resident representatives of United Nations 
members to a specialized United Nations agency and such resident members 
of the staffs of representatives to a specialized United Nations agency 
as may be agreed upon between the principal executive officer of the 
specialized agency, the Government of the United States, and the 
Government of the United Nations member concerned and members of their 
families;
    (5) The Secretary-General, Under Secretaries-General, and Assistant 
Secretaries-General to the United Nations and members of their families;
    (6) Representatives of members to the principal and subsidiary 
organs of the United Nations and to conferences convened by the United 
Nations, while exercising their functions and during their journey to 
and from the place of meeting, with regard to personal baggage only;
    (7) Experts performing missions for the United Nations, the same 
facilities for personal baggage as are accorded diplomatic envoys;
    (8) Any person designated by a member of the Organization of 
American States as its representative or interim representative on the 
council of the Organization of American States and members of their 
families; and
    (9) All other permanent members of the Delegation of a member of the 
Organization of American States and members of their families regarding 
whom there is agreement for that purpose between the government of the 
member state concerned, the Secretary-General of the Organization of 
American States, and the Government of the United States of America.
    (b) Absence of special request. In the absence of a special request 
from the

[[Page 162]]

Department of State prior to the arrival of persons of the classes 
enumerated in paragraph (a) of this section, the privilege of admission 
free of duty without entry may be extended to their baggage and effects 
upon presentation of their credentials or other proof of identity.
    (c) Importations for personal or family use. Upon the request of the 
Department of State and appropriate instructions from the United States 
Customs Service, the privilege of importing without entry and free of 
duty articles for their personal or family use but not as an 
accommodation for others or for sale or other commercial use may be 
granted to persons of the classes enumerated in paragraph (a) of this 
section except those in paragraph (a) (6) and (7) of this section, under 
subheading 9806.00.55, Harmonized Tariff Schedule of the United States 
(19 U.S.C. 1202).
    (d) Personal inviolability. The person of the representatives to and 
officers of the United Nations and the Organization of American States 
set forth in paragraph (a) of this section shall be free from arrest, 
search, and detention except that persons of the rank set forth in 
paragraph (a) (6) and (7) of this section shall be accorded this 
privilege only while exercising their function and traveling to and from 
the place of meeting.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 89-1, 53 FR 
51266, Dec. 21, 1988]



Sec. 148.89  Property of public international organizations and foreign 
governments.

    (a) Exemption from duty. Property of designated international 
organizations listed in paragraph (b) of Sec. 148.87 or of foreign 
governments shall be admitted free of duty and internal-revenue taxes 
imposed upon or by reason of importation under 22 U.S.C. 288a(d), but 
such exemption shall be granted only upon the receipt in each instance 
of instruction from the United States Customs Service issued at the 
request of the Department of State.
    (b) Bond. Any Customs bond which may be required from a designated 
international organization (see paragraph (b) of Sec. 148.87) in 
connection with the importation or entry of merchandise into, or the 
exportation of merchandise from, the United States may be accepted 
without surety.

[T.D. 73-27, 38 FR 2449, Jan. 26, 1973, as amended by T.D. 82-145, 47 FR 
35479, Aug. 16, 1982]



Sec. 148.90  Foreign military personnel.

    (a) Exemptions allowed. Port directors shall in accordance with the 
provisions of this section admit the following free of duty and internal 
revenue tax imposed upon or by reason of importation:
    (1) The baggage and effects of persons on duty in the United States 
as members of the armed forces of any foreign country, and of their 
immediate families under subheading 9806.00.20, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202);
    (2) Articles entered or withdrawn from warehouse for consumption by 
a member of the armed forces of any foreign country on duty in the 
United States, for his personal use or that of any member of his 
immediate family but not as an accommodation to others or for sale or 
other commercial use, under subheading 9806.00.45, HTSUS; and
    (3) Articles entered or withdrawn from warehouse for consumption for 
the official use of members of the armed forces of any foreign country 
on duty in the United States, under subheading 9809.00.30, HTSUS.
    (b) Reciprocity limitation. When port directors have been advised 
officially of a finding by the Secretary of the Treasury that a foreign 
country does not reciprocate to members of the armed forces of the 
United States on duty in its country and members of their immediate 
families the privileges accorded its members and their families in the 
United States, the port directors shall accord to the personnel of such 
foreign government privileges under the law only to the extent to which 
the foreign government accords similar treatment to members of the armed 
forces of the United States and members of their immediate families.
    (c) Status of importer questioned. If any question arises as to the 
status of the importer under subheadings 9806.00.20, 9806.00.45 and 
9809.00.30, HTSUS, or

[[Page 163]]

whether articles entered thereunder are for official use or for personal 
or family use, but not as an accommodation to others or for sale or 
other commercial use, the port director shall report the available facts 
to the Commissioner of Customs for instructions.
    (d) Alcoholic beverages for personal or family use--(1) General 
rule--(i) Limitation stated. Except in the case of exceptional 
circumstances set forth in paragraph (d)(2) of this section, entry of 
alcoholic beverages (other than malt beverages) for personal or family 
use but not as an accommodation to others or for sale or other 
commercial use under subheading 9806.00.45, HTSUS, is limited to one 
case each month.
    (ii) Advance entry or withdrawal. A maximum of three cases (the 
initial one plus two cases in advance) may be entered or withdrawn at 
any one time in a given 3-month period if the port director is satisfied 
they are for personal or family use but not as an accommodation to 
others or for sale or other commercial use. Such advance entry or 
withdrawal shall not be deemed to broaden the one case per month 
limitation.
    (iii) Certification. At the time of each entry or withdrawal, the 
member of the Armed Forces must certify that since his last entry or 
withdrawal there have expired a number of months equal to the numbers of 
cases last entered or withdrawn.
    (2) Exceptional circumstances. In exceptional circumstances an 
additional quantity of alcoholic beverages for personal or family use 
but not as an accommodation to others or for sale or other commercial 
use, in excess of the one case per month limitation may be allowed under 
the following procedure:
    (i) A statement signed by the member of the Armed Forces and 
attached to his declaration for free entry will be submitted to the port 
director, setting forth the reason for requesting the additional 
quantity;
    (ii) The statement of request must be approved by the officer or 
person in charge of the Armed Forces involved, or a person specifically 
authorized by such officer or person to approve such requests; and
    (iii) The port director must be satisfied that the need for the 
additional quantity is justified. Questionable cases shall be referred 
to the Commissioner of Customs for instructions.
    (3) Retention and verification of the warehouse proprietors' 
records. The warehouse proprietor shall retain all records relating to 
the entry and withdrawal of alcoholic beverages under subheading 
9806.00.45, HTSUS, for 3 years from the date of the entry against which 
the withdrawal of the alcoholic beverages is charged.
    (e) Entry requirements. The entry requirements prescribed in the 
Tariff Act of 1930, as amended (Title 19, United States Code), and the 
regulations thereunder are applicable to articles for which free entry 
is claimed under subheadings 9806.00.20, 9806.00.45, 9809.00.30, HTSUS. 
No invoices shall be required.

[T.D. 73-227, 38 FR 22548, Aug. 22, 1973, as amended by T.D. 79-159, 44 
FR 31969, June 4, 1979; T.D. 89-1, 53 FR 51266, Dec. 21, 1988]



          Subpart J_Noncommercial Importations of Limited Value



Sec. 148.101  Applicability.

    Each person, including a crewmember, arriving in the United States 
who enters articles for his personal or household use, or as bona fide 
gifts not imported for sale nor for the account of another person, 
valued in the aggregate at not over $1,000 fair retail value in the 
country of acquisition, shall be assessed a flat rate of duty on the 
articles, as provided in Sec. 148.102. The entry shall be made under 
subheading 9816.00.20 or 9816.00.40, Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202), and is subject to the limitations and 
conditions in this subpart. Except as provided in Sec. 148.105, the 
flat rate of duty shall be assessed in place of any rates of duty other 
than free rates of duty. If the dutiable amount of the article(s) is 
over $1,000 fair retail value, the flat rate of duty provisions shall 
apply to the amount not over $1,000 fair retail value, and the excess 
amount shall be valued under section 402, Tariff Act of 1930, as amended 
(19 U.S.C. 1401a). The article(s) shall be classified under the 
appropriate subheading number of the tariff schedule.

[[Page 164]]

For purposes of this subpart, ``fair retail value'' in the country of 
acquisition means the price at which the merchandise is freely offered 
there for sale at retail and ``country of acquisition'' includes America 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the 
Virgin Islands of the United States.
    Two examples of the application of this subpart are set forth below:

    Example 1: B returned from Europe where he acquired merchandise 
having a fair retail value of $1,950. Assume for purposes of this 
example that (1) in addition to the personal exemption of $400, $100 of 
the merchandise carries a free rate of duty, (2) allowances and 
exemptions have not been used within the past 30 days, and (3) all 
articles in excess of allowances and exemptions and duty-free articles 
are dutiable at rates other than the flat rate.
    B presents his baggage to the Customs officer for examination and 
his declaration for verification. Duty is figured as follows:

------------------------------------------------------------------------
                                                        Fair
                                                       retail     Duty
                                                        value
------------------------------------------------------------------------
(a) The $400 personal exemption.....................      $400  ........
(b) Articles which carry a free rate of duty........       100  ........
(c) The $1,000 flat rate of duty allowance               1,000  ........
 calculated at:.....................................
    4 percent (effective 01/01/01 through 12/31/01).  ........       $40
    3 percent (effective from 01/01/02).............  ........        30
(d) Balance of articles subject to duty at rates       \1\ 450     (\1\)
 other than flat rate...............................
                                                     -----------
        Total.......................................       \1\     (\1\)
                                                         1,950
------------------------------------------------------------------------
\1\ The articles not covered by exemptions, allowances, and duty-free
  rates will be valued under section 402, Tariff Act of 1930, as
  amended, and duty calculated at rates other than the flat rate.

    Example 2: Mr. and Mrs. B return from the U.S. Virgin Islands. 
During the trip, they acquired merchandise having a fair retail value of 
$4,900. Assume for purposes of this example that (1) in addition to the 
personal exemption of $1,200 for each returning resident, $100 of the 
merchandise carries a free rate of duty, (2) allowances and exemptions 
have not been used within the past 30 days, (3) all articles in excess 
of allowances and exemptions and duty-free articles are dutiable at 
rates other than the flat rate, and (4) Mrs. B made $400 in purchases on 
the trip, none of which carries a free rate of duty.
    Mr. and Mrs. B present their baggage to the Customs officer for 
examination and their declaration for verification. Duty is figured as 
follows:

------------------------------------------------------------------------
                                                        Fair
                                                       retail     Duty
                                                        value
------------------------------------------------------------------------
(a) The $1,200 personal exemptions for residents        $2,400  ........
 returning from the U.S. Virgin Islands are grouped
 for a total of.....................................
(b) Articles which carry a free rate of duty........       100  ........
(c) The $1,000 flat rate of duty allowance               2,000  ........
 calculated at:.....................................
    2 percent (effective 01/01/01 through 12/31/01).  ........       $40
    1.5 percent (effective from 01/01/02)...........  ........        30
(d) Balance of articles subject to duty at rates       \1\ 400     (\1\)
 other than flat rate...............................
                                                     -----------
        Total.......................................       \1\     (\1\)
                                                         4,900
------------------------------------------------------------------------
\1\ The articles not covered by exemptions, allowances, and duty-free
  rates will be valued under section 402, Tariff Act of 1930, as
  amended, and duty calculated at rates other than the flat rate.


[T.D. 78-394, 43 FR 49789, Oct. 25, 1978, as amended by T.D. 86-118, 51 
FR 22516, June 20, 1986; 52 FR 12149, Apr. 15, 1987; T.D. 87-89, 52 FR 
24446, July 1, 1987; T.D. 89-1, 53 FR 51266, Dec. 21, 1988; T.D. 97-75, 
62 FR 46442, Sept. 3, 1997; T.D. 01-61, 66 FR 46218, Sept. 4, 2001]



Sec. 148.102  Flat rate of duty.

    (a) Generally. The rate of duty on articles accompanying any person, 
including a crewmember, arriving in the United States (exclusive of 
duty-free articles and articles acquired in American Samoa, Guam, the 
Commonwealth of the Northern Mariana Islands, or the Virgin Islands of 
the United States) shall be 4 percent, effective January 1, 2001, and 3 
percent, effective January 1, 2002, of the fair retail value in the 
country of acquisition.
    (b) American Samoa, Guam, the Northern Mariana Islands, and the 
Virgin Islands. The rate of duty on articles accompanying any person, 
including a crewmember, arriving in the United States directly or 
indirectly from American Samoa, Guam, the Commonwealth of the Northern 
Mariana Islands, or the Virgin Islands of the United States (exclusive 
of duty-free articles), acquired in these locations as an incident of 
the person's physical presence there, shall be 2 percent, effective 
January 1, 2001, and 1.5 percent, effective January 1, 2002, of the fair 
retail value in the location in which acquired.

[T.D. 01-61, 66 FR 46218, Sept. 4, 2001]

[[Page 165]]



Sec. 148.103  Family grouping of allowances.

    (a) Generally. When members of a family residing in one household 
travel together on their return to the United States, the flat rate of 
duty allowance will be grouped and allowed without regard to which 
member of the family is the owner of the articles. A group allowance 
shall not include an allowance for a family member not entitled to it in 
his own right, nor shall a group allowance be applied to any property of 
that member.
    (b) Members of a family residing in one household. ``Members of a 
family residing in one household'' shall include all persons, regardless 
of age, who:
    (1) Are related by blood, marriage, or adoption;
    (2) Lived together in one household at their last permanent 
residence; and
    (3) Intend to live in one household after their arrival in the 
United States.

[T.D. 78-394, 43 FR 49789, Oct. 25, 1978]



Sec. 148.104  Frequency of use.

    (a) 30-day period. The flat rate of duty shall not apply to a person 
who has used the provision within the 30-day period immediately prior to 
his arrival in the United States. The date of the person's last arrival 
on which he declared articles for which the flat rate of duty was 
applicable shall be considered the date that rate was last used.
    (b) Computation of time. The 30-day period immediately prior to the 
person's arrival in the United States shall be computed by excluding the 
day of arrival and counting backward 30 days.
    (c) Remainder not applicable to subsequent journey. A person who has 
received a flat rate of duty allowance of less than $1,000 in connection 
with his return from one journey is not entitled to apply the remainder 
to articles acquired abroad on a subsequent journey.

[T.D. 78-394, 43 FR 49789, Oct. 25, 1978, as amended by T.D. 86-118, 51 
FR 22516, June 20, 1986; T.D. 97-75, 62 FR 46443, Sept. 3, 1997]



Sec. 148.105  Procedure for excluding articles from flat rate of duty.

    (a) Generally. Any person who has information that merchandise is 
being imported into the United States under the provisions of subheading 
9816.00.20 or 9816.00.40, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), and this subpart which adversely affects the 
economic interest of the United States may communicate the information 
in writing to the Commissioner of Customs, Attention: Office of Field 
Operations, Washington, DC 20229.
    (b) Content of communication. The communication to the Commissioner 
need not be in any particular form but shall contain the following:
    (1) The name of the individual and the person, firm, or association 
the individual represents, if any;
    (2) The nature of the individual's interest in the matter, if any;
    (3) A description of the merchandise, which it is alleged affects 
the economic interest of the United States adversely, including 
subheadings of the HTSUS, if known;
    (4) The country of acquisition and the ports and dates of entry of 
the merchandise, if known; and
    (5) A statement and supporting evidence as to the manner in which 
the individual believes the economic interest of the United States is 
being adversely affected.
    (c) Inquiry to be conducted. Upon receipt of a communication 
containing the information required by paragraph (b) of this section, an 
inquiry will be conducted.
    (d) Negative determination. If the inquiry results in a finding that 
no reasonable cause exists to believe that the application of the flat 
rate of duty provisions to a particular article of merchandise is 
adversely affecting the economic interest of the United States, the 
inquirer shall be advised in writing of the finding and the matter shall 
be closed.
    (e) Publication of tentative finding. If the inquiry results in a 
finding by the Secretary of the Treasury that reasonable cause exists to 
believe that the application of the flat rate of duty provisions to a 
particular article of merchandise is affecting the economic interest of 
the United States adversely, a notice of the finding will be published 
in the Federal Register and Customs

[[Page 166]]

Bulletin, along with a statement of intent to exclude the articles from 
application of the flat rate of duty provisions. Interested persons will 
be given an opportunity to submit written comments on the notice.
    (f) Final determination. Based upon the comments received and the 
results of any additional inquiry as may be necessary, if it is 
determined by the Secretary of the Treasury that application of the flat 
rate of duty provisions adversely affects the economic interest of the 
United States, a Treasury Decision will be published in the Federal 
Register and Customs Bulletin announcing that the merchandise will be 
excluded from application of the flat rate of duty provisions. Excluded 
articles of merchandise shall be listed in Sec. 148.106. If it is 
determined by the Secretary of the Treasury that a valid basis for 
excluding the merchandise from the flat rate of duty provisions does not 
exist, the notice proposing to exclude the article will be withdrawn by 
publishing a notice in the Federal Register and the Customs Bulletin.

[T.D. 78-394, 43 FR 49789, Oct. 25, 1978, as amended by T.D. 89-1, 53 FR 
51267, Dec. 21, 1988; T.D. 91-77, 56 FR 46115, Sept. 10, 1991; T.D. 93-
66, 58 FR 44130, Aug. 19, 1993]



Sec. 148.106  Excluded articles of merchandise.

    The following articles of merchandise have been found to affect the 
economic interest of the United States adversely, and they are excluded 
from the application of the flat rate of duty provisions.
    [Reserved for listing.]

[T.D. 78-394, 43 FR 49789, Oct. 25, 1978]



    Subpart K_Unaccompanied Shipments From American Samoa, Guam, the 

 Commonwealth of the Northern Mariana Islands, or the Virgin Islands of 
                            the United States



Sec. 148.110  Applicability.

    The provisions of this subpart are applicable to articles not 
accompanying a person, including a crewmember, which are purchased in 
and shipped from American Samoa, Guam, the Commonwealth of the Northern 
Mariana Islands, or the Virgin Islands of the United States. However, 
this subpart is not applicable to the importation of unaccompanied 
articles in a manner prohibited by law or regulation (e.g., mail 
shipments of alcoholic beverages or alcoholic beverages shipped other 
than by mail in excess of quantities authorized by State laws or 
regulations).
    The following is a summary of the procedure to be followed to obtain 
the benefits of this subpart: A person purchasing articles in American 
Samoa, Guam, the Commonwealth of the Northern Mariana Islands, or the 
Virgin Islands of the United States would receive a sales slip, invoice, 
or other evidence of purchase which he would present to the Customs 
officer along with his baggage declaration, Customs Form 6059-B, and a 
Declaration of Unaccompa nied Articles, Customs Form 255. The latter 
form is prepared in triplicate for each shipment to follow. The Customs 
officer would verify the information, indicate on the form whether the 
article or articles were free of duty, dutiable at the flat rate, or a 
combination of the foregoing, and validate the form. Two copies would be 
returned to the traveler, who would send one form to the vendor. Upon 
receipt of the form the vendor would place it in an envelope, affix it 
to the outside of the package, clearly mark the package ``Unaccompanied 
Tourist Shipment,'' and send the package to the traveler, generally via 
mail, although it could be sent by other means. If sent through the 
mail, the package would be examined by Customs and forwarded to the 
Postal Service for delivery. Any duties due would be collected by the 
mailman. If the shipment arrives other than through the mail, the 
traveler would be notified by the carrier when the article arrives. 
Entry would be made by the carrier or the traveler at the customhouse. 
Any duties due would be collected at that time.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978; 43 FR 55758, Nov. 29, 1978; 
T.D. 97-75, 62 FR 46443, Sept. 3, 1997]

[[Page 167]]



Sec. 148.111  Written declaration for unaccompanied articles.

    The baggage declaration, Customs Form 6059-B, of a person (the 
crewmembers declaration, Customs Form 5129, in the case of a returning 
crewmember) arriving directly or indirectly from American Samoa, Guam, 
the Commonwealth of the Northern Mariana Islands, or the Virgin Islands 
of the United States shall be in writing if it covers articles which do 
not accompany him and:
    (a) The articles are entitled to free entry under the $1,200 
exemption provided by subheading 9804.00.70, Harmonized Tariff Schedule 
of the United States (HTSUS) (19 U.S.C. 1202), or
    (b) The articles are noncommerical importations of limited value 
subject to a flat rate of duty under subheading 9816.00.40, HTSUS.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978, as amended by T.D. 86-118, 51 
FR 22516, June 20, 1986; T.D. 89-1, 53 FR 51267, Dec. 21, 1988; T.D. 97-
75, 62 FR 46443, Sept. 3, 1997]



Sec. 148.112  Evidence of purchase.

    A sales slip, invoice, or other evidence of purchase, shall be 
presented with the declaration for all unaccompanied articles.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978]



Sec. 148.113  Declaration, entry, and collection of duty.

    (a) Declaration and entry for unaccompanied articles--(1) 
Declaration. A baggage declaration covering articles for which a claim 
of free entry, in whole or in part, is made under the $1,200 exemption 
provided by subheading 9804.00.70, Harmonized Tariff Schedule of the 
United States (HTSUS) (19 U.S.C. 1202), or a baggage or crewmembers 
declaration covering articles for which the flat rate of duty provision 
of subheading 9816.00.40, HTSUS appears to be applicable, shall be 
accompanied by a Declaration of Unaccompanied Articles, Customs Form 
255. Customs Form 255 shall be prepared in triplicate by the vendor or 
declarant for each shipment of declared articles not accompanying the 
person. A shipment consists of one or more packages or containers sent 
as a unit.
    (2) Verification. The Customs officer shall verify the information 
from the declaration, sales slip, invoice, or other evidence of purchase 
furnished by the person. The completed Customs Form 255 shall be 
validated by the Customs officer and two copies given to the person.
    (b) Collection of duty. Duties shall be collected before release of 
the articles, after their arrival in the United States, as provided in 
Sec. 145.12 or Sec. 148.115.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978, as amended by T.D. 86-118, 51 
FR 22516, June 20, 1986; T.D. 89-1, 53 FR 51267, Dec. 21, 1988; T.D. 93-
66, 58 FR 44131, Aug. 19, 1993; T.D. 97-75, 62 FR 46443, Sept. 3, 1997]



Sec. 148.114  Shipment of unaccompanied articles.

    One copy of the validated Customs Form 255 shall be returned to the 
vendor. The vendor shall place the form in an envelope, affix it to the 
outside of the shipment, and clearly mark the outside of the shipment 
``Unaccompanied Tourist Shipment.''

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978]



Sec. 148.115  Release of shipment.

    (a) Release after examination. Unaccompanied tourist shipments:
    (1) To which the personal exemption provided in subheading 
9804.00.70, Harmonized Tariff Schedule of the United States (HTSUS) (19 
U.S.C. 1202), is applicable, or
    (2) For which entry is made under the flat rate of duty provisions 
of subheading 9816.00.40, HTSUS, or under those provisions in 
conjunction with the regular rate of duty provision of another 
subheading of the tariff schedule, shall be released if:
    (i) The shipment is properly marked and accompanied by a validated 
copy of Customs Form 255,
    (ii) The examining Customs officer is satisfied that the contents of 
the shipment are as stated on the Customs Form 255 and, if applicable, 
that they are properly classified,
    (iii) The declared value conforms to the fair retail value in the 
country of acquisition, and
    (iv) In respect to shipments for which entry is made under 
subheading 9816.00.40, HTSUS, any duties found to be due are paid.

[[Page 168]]

    (b) Removal of Customs Form 255. The copy of Customs Form 255 
attached to the shipment shall be removed by the Customs officer and 
retained for Customs purposes.
    (c) Missing Customs Form 255. If a validated copy of Customs Form 
255 does not accompany the shipment, entry shall be made under the 
provisions of part 141 or 145 of this chapter.
    (d) Restricted or prohibited shipments. No shipment containing 
prohibited or restricted merchandise for which exemption is claimed 
under subheading 9804.00.70, HTSUS, or for which entry is claimed under 
subheading 9816.00.40, HTSUS, shall be released except upon compliance 
with the provisions of part 12 and Sec. Sec. 145.51 through 145.59 of 
this chapter, and other applicable laws and regulations.
    (e) Verification of claim. The port director may withhold release of 
any shipment for which exemption is claimed under subheading 9804.00.70, 
HTSUS, or for which entry is claimed under subheading 9816.00.40, HTSUS, 
to verify the validity of the claim. If he is unable to verify the 
claim, the merchandise shall be released under the provisions of part 
141 or 145 of this chapter.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978; 43 FR 55758, Nov. 29, 1978, as 
amended by T.D. 89-1, 53 FR 51267, Dec. 21, 1988; T.D. 93-66, 58 FR 
44131, Aug. 19, 1993]



Sec. 148.116  Claim for refund.

    Any person who has filed a declaration of unaccompanied articles 
under Sec. Sec. 148.112 and 148.113 and who is dissatisfied with the 
amount of duty assessed on the articles upon their arrival in the United 
States may file a claim for administrative review under subpart C, part 
145, of this chapter if the articles arrived by mail, or under parts 173 
and 174 if the articles arrived other than by mail. Any supporting 
documents, including a copy of Customs Form 255, should be submitted 
with the claim.

[T.D. 78-394, 43 FR 49790, Oct. 25, 1978; 43 FR 55758, Nov. 29, 1978]



PART 151_EXAMINATION, SAMPLING, AND TESTING OF MERCHANDISE--Table of Contents




Sec.
151.0 Scope.

                            Subpart A_General

151.1 Merchandise to be examined.
151.2 Quantities to be examined.
151.3 Disclosure of examination packages.
151.4 Time of examination.
151.5 Conditions for examination prior to entry.
151.6 Place of examination.
151.7 Examination elsewhere than at place of arrival or public stores.
151.8 Examination after assembly.
151.9 Immediate transportation entry delivered outside port limits.
151.10 Sampling.
151.11 Request for samples or additional examination packages after 
          release of merchandise.
151.12 Accreditation of commercial laboratories.
151.13 Approval of commercial gaugers.
151.14 Use of commercial laboratory tests in liquidation.
151.15 Movement of merchandise to a centralized examination station.
151.16 Detention of merchandise.

                 Subpart B_Sugars, Sirups, and Molasses

151.21 Definitions.
151.22 Estimated duties on raw sugar.
151.23 Allowance for moisture in raw sugar.
151.24 Unlading facilities for bulk sugar.
151.25 Mixing classes of sugar.
151.26 Molasses in tank cars.
151.27 Weighing and sampling done at time of unlading.
151.28 Gauging of sirup or molasses discharged into storage tanks.
151.29 Expense of unlading and handling.
151.30 Sugar closets.
151.31 [Reserved]

               Subpart C_Petroleum and Petroleum Products

151.41 Information on entry summary.
151.42 Controls on unlading and gauging.
151.43 [Reserved]
151.44 Storage tanks.
151.45 Storage tanks bonded as warehouses.
151.46 Allowance for detectable moisture and impurities.
151.47 Optional entry of net quantity of petroleum or petroleum 
          products.

     Subpart D_Metal-Bearing Ores and Other Metal-Bearing Materials

151.51 Sampling requirements.

[[Page 169]]

151.52 Sampling procedures.
151.53 Sample lockers.
151.54 Testing by Customs laboratory.
151.55 Deductions for loss during processing.

                         Subpart E_Wool and Hair

151.61 Definitions.
151.62 Information on invoices.
151.63 Information on entry summary.
151.64 Extra copy of entry summary.
151.65 Duties.
151.66 Duty on samples.
151.67 Sampling by importer.
151.68 Merchandise to be sampled and tested by Customs.
151.69 Transfer or exportation of part of sampling unit.
151.70 Method of sampling by Customs.
151.71 Laboratory testing for clean yield.
151.73 Importer's request for commercial laboratory test.
151.74 Retest at port director's request.
151.75 Final determination of clean yield.
151.76 Grading of wool.

                            Subpart F_Cotton

151.81 Definition of staple length.
151.82 Information on invoices.
151.83 Method of sampling.
151.84 Determination of staple length.
151.85 Importer's request for redetermination.

                         Subpart G_Fruit Juices

151.91 Brix values of unconcentrated natural fruit juices.

Subpart H [Reserved]

                Subpart I_Cigars, Cigarillos, and Tobacco

151.111 Cigars, cigarillos, and tobacco of Cuban origin.

    Authority: 19 U.S.C. 66, 1202 (General Notes 23 and 24, Harmonized 
Tariff Schedule of the United States (HTSUS)), 1624.
    Section 151.21 also issued under the provisions of Chapters 17 and 
18, HTSUS;
    Section 151.42 also issued under 19 U.S.C. 1460, 1584, 1592;
    Section 151.43 also issued under 19 U.S.C. 1592;
    Section 151.46 also issued under 19 U.S.C. 1507;
    Section 151.62 also issued under 19 U.S.C. 1481;
    Section 151.63 also issued under 19 U.S.C. 1484;
    Section 151.66 also issued under 19 U.S.C. 1562;
    Section 151.68 also issued under 19 U.S.C. 1311, 1562;
    Section 151.69 also issued under 19 U.S.C. 1557, 1562;
    Section 151.82 also issued under 19 U.S.C. 1481;
    Section 151.91 also issued under the Additional U.S. Notes to 
Chapter 20, HTSUS.

    Source: T.D. 73-175, 38 FR 17470, July 2, 1973, unless otherwise 
noted.



Sec. 151.0  Scope.

    This part sets forth general provisions governing the examination 
and sampling of imported merchandise, as well as specific provisions 
governing the examination, sampling, and testing of certain particular 
types of merchandise.



                            Subpart A_General



Sec. 151.1  Merchandise to be examined.

    The port director shall examine such packages or quantities of 
merchandise as he deems necessary for the determination of duties and 
for compliance with the Customs laws and any other laws enforced by the 
Customs Service.

[T.D. 81-240, 46 FR 45130, Sept. 10, 1981]



Sec. 151.2  Quantities to be examined.

    (a)(1) Minimum quantities. Not less than one package of every 10 
packages of merchandise shall be examined, unless a special regulation 
permits a lesser number of packages to be examined. Port directors are 
specially authorized to examine less than one package of every 10 
packages, but not less than one package of every invoice, in the case of 
any merchandise which is:
    (i) Imported in packages the contents and values of which are 
uniform, or
    (ii) Imported in packages the contents of which are identical as to 
character although differing as to quantity and value per package.
    (2) Exceptions to minimum quantities. At ports of entry specifically 
designated by the Commissioner of Customs, the port director is 
authorized to release, without examination, merchandise of a character 
which the port director has determined need not be examined in every 
instance to ensure the protection of the revenue and compliance with the 
Customs laws and any other laws enforced by the Customs Service.

[T.D. 81-240, 46 FR 45130, Sept. 10, 1981]

[[Page 170]]



Sec. 151.3  Disclosure of examination packages.

    Information as to the particular packages which will be examined 
shall not be made available to the importer, his agent, or any person 
other than Customs officers necessarily concerned, until the merchandise 
has arrived within the limits of the port of entry.



Sec. 151.4  Time of examination.

    Imported merchandise shall not be opened, examined, or inspected 
until it has been entered under some form of entry for consumption or 
warehouse, except in the following cases:
    (a) Official Government examination and sampling. Authorized 
employees of the Customs Service, Food and Drug Administration, Animal 
and Plant Health Inspection Service, Public Health Service, or other 
Government agency may for official purposes examine or take samples of 
merchandise for which entry has not been filed, including merchandise 
being released under a special permit for immediate delivery.
    (b) Perishable merchandise, benzenoid chemicals, and merchandise 
received without an invoice. An application by the importer to examine 
merchandise, whether or not covered by an entry for transportation in 
bond or for exportation, may be granted by the port director, under the 
conditions listed in Sec. 151.5, in the following cases:
    (1) Examination of perishable merchandise is desired solely to 
determine its condition. This is not limited to a single examination, 
and there is no objection to incidental display to prospective buyers 
during the examination.
    (2) [Reserved]
    (3) The importer has been unable to obtain the required documents or 
information to make the necessary entry, and examination of the 
merchandise is required to obtain information for the preparation of a 
pro forma invoice to be used in making entry.
    (c) Examination of merchandise entered for transportation under bond 
or for exportation--(1) Examination, sampling, weighing or emergency 
operation. As a bona fide incident to exportation or further 
transportation, the importer of merchandise entered or withdrawn for 
transportation under bond or for exportation may, upon written 
application to the port director supported by a valid business reason 
for the request, be permitted to examine, sample, weigh, or subject his 
merchandise to an operation required by reason of an emergency, provided 
that any operation performed on the merchandise does not constitute a 
manufacture, and that Sec. 151.5 is complied with. For conditions 
governing transshipment and emergency access to the shipment by the 
carrier, see Sec. 18.3 of this chapter.
    (2) Nonemergency operation. In cases not involving an emergency, an 
operation not constituting a manufacture may be permitted under the 
conditions listed in paragraph (c)(1) of this section if neither the 
protection of the revenue nor the proper conduct of Customs business 
requires that the operation be done in a Customs bonded warehouse, 
provided that the importer's written application for such operation is 
approved by the port director.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 95-99, 60 FR 
62733, Dec. 7, 1995; T.D. 97-82, 62 FR 51771, Oct. 3, 1997]



Sec. 151.5  Conditions for examination prior to entry.

    Examination, sampling, weighing, or operation upon merchandise at 
the importer's request prior to entry for consumption or warehouse, as 
provided for in Sec. 151.4 (b) and (c), shall be subject to the 
following conditions:
    (a) The operation permitted shall be executed under Customs 
supervision;
    (b) If the merchandise is in possession or joint possession of a 
carrier or container station operator, the concurrence of such carrier 
or operator shall be obtained; and
    (c) The Government shall be reimbursed for the compensation, 
computed in accordance with Sec. 24.17(d) of this chapter, and other 
expenses of the Customs officer or employee supervising the action 
permitted.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 95-99, 60 FR 
62733, Dec. 7, 1995]

[[Page 171]]



Sec. 151.6  Place of examination.

    All merchandise will be examined at the place of arrival, unless 
examination at another place is required or authorized by the port 
director in accordance with Sec. 151.7 or Sec. 151.15 of this part. 
Except where the merchandise is required by the port director to be 
examined at the public stores, the importer shall bear any expense 
involved in preparing the merchandise for Customs examination and in the 
closing of packages.

[T.D. 84-152, 49 FR 29374, July 20, 1984, as amended by T.D. 93-6, 58 FR 
5606, Jan. 22, 1993]



Sec. 151.7  Examination elsewhere than at place of arrival or public 
stores.

    The port director may require or authorize examination at a place 
other than the place of arrival or the public stores, such as at the 
importer's premises or at a centralized examination station under Sec. 
151.15 of this part. If examination at a place other than at the place 
of arrival or the public stores is authorized it will be subject to the 
following conditions:
    (a) Sealing of packages. If examination is to be made at the 
importer's premises or other place not under the control of Customs, the 
port director may require the packages to be corded and sealed by a 
Customs officer before the packages are removed from the place of 
arrival. The packages shall be opened only in the presence of the 
Customs officer authorized to examine their contents.
    (b) Preparation for Customs examination and closing of packages. 
Except when merchandise is required by the port director to be examined 
at the public stores, the importer shall arrange and bear any expense 
for preparation of the merchandise for Customs examination and closing 
of packages.
    (c) Reimbursement of expenses outside port limits. If the place of 
examination is not located within the limits of a port of entry or at a 
Customs station at which Customs is permanently located, whether or not 
that location is the place of arrival, the importer shall pay any 
additional expenses, including actual expenses of travel and subsistence 
but not the salary during regular hours of duty of the examining 
officer. However, no collection will be made if the total amount 
chargeable against one importer for one day amounts to less than 50 
cents. If the total amount chargeable amounts to 50 cents or more but 
less than $1, a minimum charge of $1 will be made.
    (d) Bond for removal from Customs custody. Before permitting the 
removal of merchandise for examination elsewhere than at the public 
stores, wharf, or other place under the control of Customs, the port 
director shall require the importer to execute a bond on Customs Form 
301, containing the bond conditions set forth in Sec. 113.62 of this 
chapter.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 84-152, 49 
FR 29374, July 20, 1984; T.D. 84-213, 49 FR 41186, Oct. 19, 1984; T.D. 
93-6, 58 FR 5606, Jan. 22, 1993]



Sec. 151.8  Examination after assembly.

    (a) Application by importer. Upon application by the importer, 
machinery, altars, shrines, and other articles which must be set up or 
assembled prior to examination may be examined at the mill, factory, or 
other suitable place after being assembled.
    (b) Conditions applicable. The importer shall comply with the 
conditions set forth in Sec. 151.7 (b) through (d). The port director 
may also require that a deposit be made of the estimated additional 
expense. The packages need not be corded and sealed in accordance with 
Sec. 151.7(a), but the port director may make such preliminary 
examination as he deems necessary to identify the merchandise with the 
invoice.
    (c) Removal of merchandise and notification of assembly. After the 
bond required by Sec. 151.7(d) has been filed and any necessary 
preliminary examination has been made, the port director may permit the 
merchandise to be removed to the place at which it is to be assembled 
for examination. Within 90 days after such removal, unless an extension 
has been applied for and granted by the port director, the importer 
shall notify the port director that the merchandise has been assembled 
and is ready for examination, whereupon final examination shall be made.

[[Page 172]]



Sec. 151.9  Immediate transportation entry delivered outside port limits.

    When merchandise covered by an immediate transportation entry has 
been authorized by the port director to be delivered to a place outside 
a port of entry as provided for in Sec. 18.11(c) of this chapter, the 
provisions of Sec. 151.7 shall be complied with to the same extent as 
if the merchandise had been delivered to the port of entry, and then 
authorized to be examined elsewhere than at the public stores, wharf, or 
other place under the control of Customs.



Sec. 151.10  Sampling.

    When necessary, the port director may obtain samples of merchandise 
for appraisement, classification, or other official purposes. Samples 
shall be taken by Customs or a commercial gauger approved in accordance 
with Sec. 151.13. Samples shall be marked to ensure identification and 
retained according to established policies.

[T.D. 87-39, 52 FR 9787, Mar. 26, 1987]



Sec. 151.11  Request for samples or additional examination packages 
after release of merchandise.

    If the port director requires samples or additional examination 
packages of merchandise which has been released from Customs custody, he 
shall send the importer a written request, on Customs Form 28, Request 
for Information, or other appropriate form, to submit the necessary 
samples or packages. If the request is not promptly complied with, the 
port director may make a demand under the bond for the return of the 
necessary merchandise to Customs custody in accordance with Sec. 
141.113 of this chapter.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 75-152, 40 
FR 27444, June 30, 1975; T.D. 84-213, 49 FR 41186, Oct. 19, 1984]



Sec. 151.12  Accreditation of commercial laboratories.

    This section sets forth the requirements for commercial laboratories 
to obtain accreditation by Customs for the testing of certain 
commodities, and explains the operation of such accredited laboratories. 
This section also provides for the imposition of accreditation and 
reaccreditation fees, sets forth grounds for the suspension and 
revocation of accreditation, and provides for the imposition of a 
monetary penalty for an accredited commercial laboratory that fails to 
adhere to the provisions of this section.
    (a) Definitions. For purposes of this section, the following words 
and phrases have the meanings indicated:
    Analysis record. An ``analysis record'' is a compilation of all 
documents which have been generated during the course of analysis of a 
particular sample which, under normal circumstances, may include, both 
in paper and electronic-form, such documents as work sheets, notes, 
associated spectra (both spectra of the actual product and any standard 
spectra used for comparison), photographs and microphotographs, and the 
laboratory report.
    Assistant Commissioner. In Sec. Sec. 151.12 and 151.13, references 
to the ``Assistant Commissioner'' mean the Assistant Commissioner, 
Office of Field Operations, located in Washington, D.C.
    Check samples. ``Check samples'' are samples which have been 
distributed by Customs to accredited laboratories to test their 
proficiency in a certain area of accreditation.
    Commodity Group Brochure. A ``Commodity Group Brochure'' is a 
booklet which contains a listing of laboratory methods which commercial 
laboratories are required to have the capability to perform to qualify 
for Customs-accreditation in a particular commodity group. The brochures 
and the U.S. Customs Laboratory Methods Manual will specify the 
particular laboratory testing methods required for particular commodity 
groups, unless written permission from the Executive Director is given 
to use an alternate method. Procedures required by the Executive 
Director may reference applicable general industry testing standards, 
published by such organizations as the American Society for Testing and 
Materials (ASTM) and the American Petroleum Institute (API). Commodity 
Group Brochures and a listing of the methods found in the U.S. Customs 
Laboratory Methods Manual are available from the U.S. Customs Service, 
Attention: Executive Director, Laboratories and Scientific Services, 
Washington, D.C. 20229 and can also be

[[Page 173]]

found on the Customs Internet Web Site: www.customs.gov.
    Executive Director. In Sec. Sec. 151.12 and 151.13, references to 
the ``Executive Director'' mean the Executive Director, Laboratories and 
Scientific Services, located in Washington, D.C.
    (b) What is a ``Customs-accredited laboratory''? ``Commercial 
laboratories'' are individuals and commercial organizations that analyze 
merchandise, i.e., determine its composition and/or characteristics, 
through laboratory analysis. A ``Customs-accredited laboratory'' is a 
commercial laboratory, within the United States, that has demonstrated, 
to the satisfaction of the Executive Director, pursuant to this section, 
the capability to perform analysis of certain commodities to determine 
elements relating to the admissibility, quantity, composition, or 
characteristics of imported merchandise. Customs accreditation extends 
only to the performance of such functions as are vested in, or delegated 
to, Customs.
    (c) What are the obligations of a Customs-accredited laboratory? A 
commercial laboratory accredited by Customs agrees to the following 
conditions and requirements:
    (1) To comply with the requirements of part 151, Customs Regulations 
(19 CFR part 151), and to conduct professional services in conformance 
with approved standards and procedures, including procedures which may 
be required by the Commissioner of Customs or the Executive Director;
    (2) To have no interest in or other connection with any business or 
other activity which might affect the unbiased performance of duties as 
a Customs-accredited laboratory. It is understood that this does not 
prohibit acceptance of the usual fees for professional services;
    (3) To maintain the ability, i.e., the instrumentation, equipment, 
qualified staff, facilities, etc., to perform the services for which the 
laboratory is accredited, and allow the Executive Director to evaluate 
that ability on a periodic basis by such means as on-site inspections, 
demonstrations of analysis procedures, reviews of submitted records, and 
proficiency testing through check samples;
    (4) To retain those laboratory records beyond the five-year record-
retention period and samples (see paragraph (j)(1) of this section) 
specified by Customs as necessary to address matters concerned in 
pending litigation, and, if laboratory operations or accreditation 
cease, to contact Customs immediately regarding the disposition of 
records/samples retained;
    (5) To promptly investigate any circumstance which might affect the 
accuracy of work performed as an accredited laboratory, to correct the 
situation immediately, and to notify both the port director and the 
Executive Director of such matters, their consequences, and any 
corrective action taken or that needs to be taken; and
    (6) To immediately notify both the port director and the Executive 
Director of any attempt to impede, influence, or coerce laboratory 
personnel in the performance of their duties, or of any decision to 
terminate laboratory operations or accredited status. Further, within 5 
days of any changes involving legal name, address, ownership, parent-
subsidiary relationships, bond, other offices or sites, or approved 
signatories to notify the Executive Director by certified mail.
    (d) What are the commodity groups for which accreditation may be 
sought? (1) Commercial laboratories may apply for accreditation to 
perform tests for any of the commodity groups listed in paragraph (d)(2) 
of this section. Applicable test procedures are listed in Commodity 
Group Brochures and the U.S. Customs Laboratory Methods Manual. 
Application may be made for accreditation in more than one commodity 
group. At the discretion of the Executive Director accreditation may be 
granted for subgroups of tests within a commodity group or for commodity 
groups not specifically enumerated. Once accredited, a Customs-
accredited laboratory may apply at any time to expand its accreditation, 
to add new testing sites, or increase the number of commodity groups or 
subgroups accredited.
    (2) The commodity groups for which accreditation may be sought 
without special permission from the Executive Director are:

[[Page 174]]

    (i) Dairy and Chocolate Products entered under Chapters 4, 18, and 
21 of the Harmonized Tariff Schedule of the United States (HTSUS);
    (ii) Food and Food Products entered under Chapters 7-12, 15, 16, and 
19-21, HTSUS;
    (iii) Botanical Identification--materials and products entered under 
Chapters 14 and 44-46, HTSUS;
    (iv) Sugar, Sugar Syrups, and Confectionery products entered under 
Chapter 17, HTSUS;
    (v) Spirituous Beverages entered under Chapter 22, HTSUS;
    (vi) Building Stone, Ceramics, Glassware, and Other Mineral 
Substances entered under Chapters 25 and 68-70, HTSUS;
    (vii) Inorganic Materials, including Inorganic Compounds and Ores, 
entered under Chapters 26, 28, 31, and 36-38, HTSUS;
    (viii) Petroleum and Petroleum Products entered under Chapters 27 
and 29, HTSUS;
    (ix) Organic Materials, including Intermediates and Pharmaceuticals, 
entered under Chapters 29, 30, 34, 35, and 38, HTSUS;
    (x) Rubber, Plastics, Polymers, Pigments and Paints entered under 
Chapters 32, 39, and 40, HTSUS;
    (xi) Essential Oils and Perfumes entered under Chapter 33, HTSUS;
    (xii) Leather and Articles of Leather entered under Chapters 41 and 
42, HTSUS;
    (xiii) Paper and Paper Products entered under Chapters 47-49, HTSUS;
    (xiv) Textiles and Related Products, including footwear and hats, 
entered under Chapters 50-67, HTSUS; and,
    (xv) Metals and Alloys entered under Chapters 72-83, HTSUS.
    (e) What are the approved methods of analysis? Customs-accredited 
laboratories must follow the general or specific testing methods set 
forth in Commodity Group Brochures and the U.S. Customs Laboratory 
Methods Manual in the testing of designated commodities, unless the 
Executive Director gives written permission to use an alternate method. 
Alternative methods will be considered and approved on a case-by-case 
basis.
    (f) How would a commercial laboratory become a Customs-accredited 
laboratory? --(1) What should an application contain? An application for 
Customs accreditation must contain the following information:
    (i) The applicant's legal name and the address of its principal 
place of business and any other facility out of which it will work;
    (ii) Detailed statements of ownership and any partnerships, parent-
subsidiary relationships, or affiliations with any other domestic or 
foreign organizations, including, but not limited to, importers, other 
commercial laboratories, producers, refiners, Customs brokers, or 
carriers;
    (iii) A statement of financial condition;
    (iv) If a corporation, a copy of the articles of incorporation and 
the names of all officers and directors;
    (v) The names, titles, and qualifications of each person who will be 
authorized to sign or approve analysis reports on behalf of the 
commercial laboratory;
    (vi) A complete description of the applicant's facilities, 
instruments, and equipment;
    (vii) An express agreement that if notified by Customs of pending 
accreditation to execute a bond in accordance with part 113, Customs 
Regulations (19 CFR part 113), and submit it to the Customs port nearest 
to the applicant's main office. (The limits of liability on the bond 
will be established by the Customs port in consultation with the 
Executive Director. In order to retain Customs accreditation, the 
laboratory must maintain an adequate bond, as determined by the port 
director);
    (viii) A listing of each commodity group for which accreditation is 
being sought and, if methods are being submitted for approval which are 
not specifically provided for in a Commodity Group Brochure and the U.S. 
Customs Laboratory Methods Manual, a listing of such methods;
    (ix) A listing by commodity group of each method according to its 
Customs Laboratory Method Number for which the laboratory is seeking 
accreditation;
    (x) An express agreement to be bound by the obligations contained in 
paragraph (c) of this section; and,

[[Page 175]]

    (xi) A nonrefundable pre-payment equal to 50 percent of the fixed 
accreditation fee, as published in the Federal Register and Customs 
Bulletin, to cover preliminary processing costs. Further, the applicant 
agrees to pay Customs within 30 days of notification of preliminary 
accreditation the associated charges assessed for accreditation, i.e., 
those charges for actual travel and background investigation costs, and 
the balance of the fixed accreditation fee.
    (2) Where should an application be sent? A commercial laboratory 
seeking accreditation or an extension of an existing accreditation must 
send a letter of application to the U.S. Customs Service, Attention: 
Executive Director, Laboratories & Scientific Services, 1300 
Pennsylvania Ave., NW, Washington, D.C. 20229.
    (3) How will an application be reviewed?--(i) Physical plant and 
management system. The facility of the applicant will be inspected to 
ensure that it is properly equipped to perform the necessary tests and 
that staff personnel are capable of performing required tests. Customs 
evaluation of an applicant's professional abilities will be in 
accordance with the general criteria contained in either the American 
Society for Testing and Materials (ASTM) E548 (Standard Guide for 
General Criteria Used for Evaluating Laboratory Competence) or the ISO/
IEC Guide 25 (General Requirements for the Competence of Calibration and 
Testing Laboratories). This review will ascertain the laboratory's 
ability to manage and control the acquisition of technical data. The 
review will be performed at the time of initial application and upon 
reaccreditation at three-year intervals.
    (ii) Ability to perform tests on specified commodity groups. For 
each commodity group applied for, the applicant will undergo a separate 
review of testing capabilities. The specific accreditation will be based 
on the laboratory's ability to perform the tests required for that 
commodity group. This will include the qualifications of the technical 
personnel in this field and the instrument availability required by the 
test methods. Maintenance of accreditation will be ongoing and may 
require the submission of test results on periodic check samples. The 
criteria for acceptance will be based on the laboratory's ability to 
produce a work product that assists in the proper classification and 
entry of imported merchandise.
    (iii) Determination of competence. The Executive Director will 
determine the applicant's overall competence, independence, and 
character by conducting on-site inspections, which may include 
demonstrations by the applicant of analysis procedures and a review of 
analysis records submitted, and background investigations. The Executive 
Director may also conduct proficiency testing through check samples.
    (iv) Evaluation of technical and operational requirements. Customs 
will determine whether the following technical and operational 
requirements are met:
    (A) Equipment. The laboratory must be equipped with all of the 
instruments and equipment needed to conduct the tests for which it is 
accredited. The laboratory must ensure that all instruments and 
equipment are properly calibrated, checked, and maintained.
    (B) Facilities. The laboratory must have, at a minimum, adequate 
space, lighting, and environmental controls to ensure compliance with 
the conditions prescribed for appropriate test procedures.
    (C) Personnel. The laboratory must be staffed with persons having 
the necessary education, training, knowledge, and experience for their 
assigned functions (e.g., maintaining equipment, calibrating 
instruments, performing laboratory analyses, evaluating analytical 
results, and signing analysis reports on behalf of the laboratory). In 
general, each technical staff member should hold, at a minimum, a 
bachelor's degree in science or have two years related experience in an 
analytical laboratory.
    (g) How will an applicant be notified concerning accreditation?--(1) 
Notice of accreditation or nonselection. When Customs evaluation of a 
laboratory's credentials is completed, the Executive Director will 
notify the laboratory in writing of its preliminary accreditation or 
nonselection. (Final accreditation determinations will not be made

[[Page 176]]

until the applicant has satisfied all bond requirements and made payment 
on all assessed charges and the balance of the applicable accreditation 
fee). All final notices of accreditation, reaccreditation, or extension 
of existing Customs accreditation will be published in the Federal 
Register and Customs Bulletin.
    (2) Grounds for nonselection. The Executive Director may deny a 
laboratory's application for any of the following reasons:
    (i) The application contains false or misleading information 
concerning a material fact;
    (ii) The laboratory, a principal of the laboratory, or a person the 
Executive Director determines is exercising substantial ownership or 
control over the laboratory operation is indicted for, convicted of, or 
has committed acts which would:
    (A) Under United States federal or state law, constitute a felony or 
misdemeanor involving misstatements, fraud, or a theft-related offense; 
or
    (B) Reflect adversely on the business integrity of the applicant;
    (iii) A determination is made that the laboratory-applicant does not 
possess the technical capability, have adequate facilities, or 
management to perform the approved methods of analysis for Customs 
purposes;
    (iv) A determination is made that the laboratory has submitted false 
reports or statements concerning the sampling of merchandise, or that 
the applicant was subject to sanctions by state, local, or professional 
administrative bodies for such conduct;
    (v) Nonpayment of assessed charges and the balance of the fixed 
accreditation fee; or
    (vi) Failure to execute a bond in accordance with part 113 of this 
chapter.
    (3) Adverse accreditation decisions; appeal procedures.
    (i) Preliminary notice. A laboratory which is not selected for 
accreditation will be sent a preliminary notice of nonselection. The 
preliminary notice of nonselection will state the specific grounds for 
the proposed nonselection decision and advise the laboratory that it may 
file a response addressing the grounds for the action proposed with the 
Executive Director within 30 calendar days of the date the preliminary 
notice of nonselection was received by the laboratory.
    (ii) Final notice. (A) Based on nonresponse. If the laboratory does 
not respond to the preliminary notice, the Executive Director will issue 
a final notice of nonselection within 60 calendar days of the date the 
preliminary notice of nonselection was received by the laboratory 
applicant. The final notice of nonselection will state the specific 
grounds for the nonselection and advise the laboratory that it may 
choose to pursue one of the following two options:
    (1) Submit a new application for accreditation, in accordance with 
the provisions of paragraph (f)(1) of this section, 180 days after the 
date of the final notice of nonselection; or
    (2) Administratively appeal the final notice of nonselection to the 
Assistant Commissioner within 30 calendar days of the date of the final 
notice of nonselection.
    (B) Based on response. If the laboratory files a timely response, 
the Executive Director will issue a final determination regarding the 
laboratory's accreditation within 30 calendar days of the date the 
applicant's response is received by the Executive Director. If this 
final determination is adverse to the laboratory, then the final notice 
of nonselection will state the specific grounds for nonselection and 
advise the laboratory that it may choose to pursue one of the two 
options provided at paragraphs (g)(3)(ii)(A)(1) and (2) of this section.
    (iii) Appeal decision. The Assistant Commissioner will issue a 
decision on the appeal within 30 calendar days of the date the appeal is 
received. If the appeal decision is adverse to the laboratory, then the 
decision notice will advise the laboratory that it may choose to pursue 
one of the following two options:
    (A) Submit a new application for accreditation, in accordance with 
the provisions of paragraph (f)(1) of this section, 120 days after the 
date of the appeal decision; or
    (B) File an action with the Court of International Trade, pursuant 
to chapter 169 of title 28, United States Code,

[[Page 177]]

within 60 days of the date of the appeal decision.
    (h) What are the accreditation/reaccreditation fee requirements?--
(1) In general. A fixed fee, representing Customs administrative 
overhead expense, will be assessed for each application for 
accreditation or reaccreditation. In addition, associated assessments, 
representing the actual costs associated with travel and per diem of 
Customs employees related to verification of application criteria and 
background investigations will be charged. The combination of the fixed 
fee and associated assessments represent reimbursement to Customs for 
costs related to accreditation and reaccreditation. The fixed fee will 
be published in the Customs Bulletin and the Federal Register. Based on 
a review of the actual costs associated with the program, the fixed fee 
may be adjusted periodically; any changes will be published in the 
Customs Bulletin and the Federal Register.
    (i) Accreditation fees. A nonrefundable pre-payment equal to 50 
percent of the fixed accreditation fee to cover preliminary processing 
costs must accompany each application for accreditation. Before a 
laboratory will be accredited, it must remit to Customs, at the address 
specified in the billing, within the 30 day billing period, the 
associated charges assessed for the accreditation and the balance of the 
fixed accreditation fee.
    (ii) Reaccreditation fees. Before a laboratory will be reaccredited, 
it must submit to Customs, at the billing address specified, within the 
30 day billing period the fixed reaccreditation fee.
    (2) Disputes. In the event a laboratory disputes the charges 
assessed for travel and per diem costs associated with scheduled 
inspection visits, it may file an appeal within 30 calendar days of the 
date of the assessment with the Executive Director. The appeal letter 
must specify which charges are in dispute and provide such supporting 
documentation as may be available for each allegation. The Executive 
Director will make findings of fact concerning the merits of an appeal 
and communicate the agency decision to the laboratory in writing within 
30 calendar days of the date of the appeal.
    (i) Can existing Customs-accredited laboratories continue to 
operate? Commercial laboratories accredited by the Executive Director 
prior to December 8, 1993, will retain that accreditation under these 
regulations provided they conduct their business in a manner consistent 
with the administrative portions of this section. This paragraph does 
not pertain to any laboratory which has had its accreditation suspended 
or revoked. Laboratories which have had their accreditations continued 
under this section will have their status reevaluated on their next 
triennial inspection date which is no earlier than three years after the 
effective date of this regulation. At the time of reaccreditation, these 
laboratories must meet the requirements of this section and remit to 
Customs, at the address specified in the billing, within the 30 day 
billing period, the fixed reaccreditation fee. Failure to meet these 
requirements will result in revocation or suspension of the 
accreditation.
    (j) How will Customs-accredited laboratories operate?--(1) Samples 
for testing. Upon request by the importer of record of merchandise, the 
port director will release a representative sample of the merchandise 
for testing by a Customs-accredited laboratory at the expense of the 
importer. Under Customs supervision, the sample will be split into two 
essentially equal parts and given to the Customs-accredited laboratory. 
One portion of the sample may be used by the Customs-accredited 
laboratory for its testing. The other portion must be retained by the 
laboratory, under appropriate storage conditions, for Customs use, as 
necessary, unless Customs requires other specific procedures. Upon 
request, the sample portion reserved for Customs purposes must be 
surrendered to Customs.
    (i) Retention of non-perishable samples. Non-perishable samples 
reserved for Customs and sample remnants from any testing must be 
retained by the accredited laboratory for a period of four months from 
the date of the laboratory's final analysis report, unless other 
instructions are issued in writing

[[Page 178]]

by Customs. At the end of this retention time period, the accredited 
laboratory may dispose of the retained samples and sample remnants in a 
manner consistent with federal, state, and local statutes.
    (ii) Retention of perishable samples. Perishable samples reserved 
for Customs and sample remnants from any testing can be disposed of more 
expeditiously than provided for at paragraph (j)(1)(i) of this section, 
if done in accordance with acceptable laboratory procedures, unless 
other instructions are issued in writing by Customs.
    (2) Reports.--(i) Contents of reports. Testing data must be obtained 
using methods approved by the Executive Director. The testing results 
from a Customs-accredited laboratory that are submitted by an importer 
of record with respect to merchandise in an entry, in the absence of 
testing conducted by Customs laboratories, will be accepted by Customs, 
provided that the importer of record certifies that the sample tested 
was taken from the merchandise in the entry and the report establishes 
elements relating to the admissibility, quantity, composition, or 
characteristics of the merchandise entered, as required by law.
    (ii) Status of commercial reports where Customs also tests 
merchandise. Nothing in these regulations will preclude Customs from 
sampling and testing merchandise from a shipment which has been sampled 
and tested by a Customs-accredited laboratory at the request of an 
importer. In cases where a shipment has been analyzed by both Customs 
and a Customs-accredited laboratory, all Customs actions will be based 
upon the analysis provided by the Customs laboratory, unless the 
Executive Director advises otherwise. If Customs tests merchandise, it 
will release the results of its test to the importer of record or its 
agent upon request unless the testing information is proprietary to the 
holder of a copyright or patent, or developed by Customs for enforcement 
purposes.
    (3) Recordkeeping requirements. Customs-accredited laboratories must 
maintain records of the type normally kept in the ordinary course of 
business in accordance with the provisions of this chapter and any other 
applicable provision of law, and make them available during normal 
business hours for Customs inspection. In addition, these laboratories 
must maintain all records necessary to permit the evaluation and 
verification of all Customs-related work, including, as appropriate, 
those described below. All records must be maintained for five years, 
unless the laboratory is notified in writing by Customs that a longer 
retention time is necessary for particular records. Electronic data 
storage and transmission may be approved by Customs.
    (i) Sample records. Records for each sample tested for Customs 
purposes must be readily accessible and contain the following 
information:
    (A) A unique identifying number;
    (B) The date when the sample was received or taken;
    (C) The identity of the commodity (e.g., crude oil);
    (D) The name of the client;
    (E) The source of the sample (e.g., name of vessel, flight number of 
airline, name of individual taking the sample); and
    (F) If available, the Customs entry date, entry number, and port of 
entry and the names of the importer, exporter, manufacturer, and 
country-of-origin.
    (ii) Major equipment records. Records for each major piece of 
equipment or instrument (including analytical balances) used in Customs-
related work must identify the name and type of instrument, the 
manufacturer's name, the instrument's model and any serial numbers, and 
the occurrence of all servicing performed on the equipment or 
instrument, to include recalibration and any repair work, identifying 
who performed the service and when.
    (iii) Records of analytical procedures. The Customs-accredited 
laboratory must maintain complete and up-to-date copies of all approved 
analytical procedures, calibration methods, etc., and must document the 
procedures each staff member is authorized to perform. These procedures 
must be readily available to appropriate staff.
    (iv) Laboratory analysis records. The Customs-accredited laboratory 
must identify each analysis by sample record number (see paragraph 
(j)(3)(i) of this

[[Page 179]]

section) and must maintain all information or data (such as sample 
weights, temperatures, references to filed spectra, etc.) associated 
with each Customs-related laboratory analysis. Each analysis record must 
be dated and initialed or signed by the staff member(s) who did the 
work.
    (v) Laboratory analysis reports. Each laboratory analysis report 
submitted to Customs must include:
    (A) The name and address of the Customs-accredited laboratory;
    (B) A description and identification of the sample, including its 
unique identifying number;
    (C) The designations of each analysis procedure used;
    (D) The analysis report itself (i.e., the pertinent characteristics 
of the sample);
    (E) The date of the report; and
    (F) The typed name and signature of the person accepting technical 
responsibility for the analysis report (i.e., an approved signatory).
    (4) Representation of Customs-accredited status. Commercial 
laboratories accredited by Customs must limit statements or wording 
regarding their accreditation to an accurate description of the tests 
for the commodity group(s) for which accreditation has been obtained. 
Use of terms other than those appearing in the notice of accreditation 
(see paragraph (g) of this section) is prohibited.
    (5) Subcontracting prohibited. Customs-accredited laboratories must 
not subcontract Customs-related analysis work to non Customs-accredited 
laboratories or non Customs-approved gaugers, but may subcontract to 
other facilities that are Customs-accredited/approved and in good 
standing.
    (k) How can a laboratory have its accreditation suspended or revoked 
or be required to pay a monetary penalty?--(1) Grounds for suspension, 
revocation, or assessment of a monetary penalty.--(i) In general. The 
Executive Director may immediately suspend or revoke a laboratory's 
accreditation only in cases where the laboratory's actions are 
intentional violations of any Customs law or when required by public 
health or safety. In other situations where the Executive Director has 
cause, the Executive Director will propose the suspension or revocation 
of a laboratory's accreditation or propose a monetary penalty and 
provide the laboratory with the opportunity to respond to the notice of 
proposed action.
    (ii) Specific grounds. A laboratory's accreditation may be suspended 
or revoked, or a monetary penalty may be assessed because:
    (A) The selection was obtained through fraud or the misstatement of 
a material fact by the laboratory;
    (B) The laboratory, a principal of the laboratory, or a person the 
port director determines is exercising substantial ownership or control 
over the laboratory operation is indicted for, convicted of, or has 
committed acts which would: under United States federal or state law, 
constitute a felony or misdemeanor involving misstatements, fraud, or a 
theft-related offense; or reflect adversely on the business integrity of 
the applicant. In the absence of an indictment, conviction, or other 
legal process, the port director must have probable cause to believe the 
proscribed acts occurred;
    (C) Staff laboratory personnel refuse or otherwise fail to follow 
any proper order of a Customs officer or any Customs order, rule, or 
regulation;
    (D) The laboratory fails to operate in accordance with the 
obligations of paragraph (c) of this section;
    (E) A determination is made that the laboratory is no longer 
technically or operationally proficient at performing the approved 
methods of analysis for Customs purposes;
    (F) The laboratory fails to remit to Customs, at the billing address 
specified, within the 30 day billing period the associated charges 
assessed for the accreditation and the balance of the fixed 
accreditation fee;
    (G) The laboratory fails to maintain its bond;
    (H) The laboratory fails to remit to Customs, at the billing address 
specified, within the 30 day billing period, the fixed reaccreditation 
fee; or
    (I) The laboratory fails to remit any monetary penalty assessed 
under this section.
    (iii) Assessment of monetary penalties. The assessment of a monetary 
penalty under this section, may be in lieu of, or

[[Page 180]]

in addition to, a suspension or revocation of accreditation under this 
section. The monetary penalty may not exceed $100,000 per violation and 
will be assessed and administered pursuant to published guidelines. Any 
monetary penalty under this section can be in addition to the recovery 
of:
    (A) Any loss of revenue, in cases where the laboratory intentionally 
falsified the analysis report in collusion with the importer, pursuant 
to 19 U.S.C. 1499(b)(1)(B)(i); or
    (B) Liquidated damages assessed under the laboratory's Customs bond.
    (2) Notice of adverse action. When a decision to suspend or revoke 
accreditation, and/or assess a monetary penalty is made, the Executive 
Director will immediately notify the laboratory in writing, indicating 
whether the action is effective immediately or is proposed.
    (i) Immediate suspension or revocation. Where the suspension or 
revocation of accreditation is immediate, the Executive Director will 
issue a final notice of adverse determination. The final notice of 
adverse determination will state the specific grounds for the immediate 
suspension or revocation, direct the laboratory to cease performing any 
Customs-accredited functions, and advise the laboratory that it may 
choose to pursue one of the following two options:
    (A) Submit a new application for accreditation, in accordance with 
the provisions of paragraph (f)(1) of this section, 180 days after the 
date of the final notice of adverse determination; or
    (B) Administratively appeal the final notice of adverse 
determination to the Assistant Commissioner within 30 calendar days of 
the date of the final notice of adverse determination.
    (ii) Proposed suspension, revocation, or assessment of monetary 
penalty.
    (A) Preliminary notice. Where the suspension or revocation of 
accreditation, and/or the assessment of a monetary penalty is proposed, 
the Executive Director will issue a preliminary notice of proposed 
action. The preliminary notice of proposed action will state the 
specific grounds for the proposed action, inform the laboratory that it 
may continue to perform those functions requiring Customs-accreditation 
until the Executive Director's final notice is issued, and advise the 
laboratory that it may file a response addressing the grounds for the 
action proposed with the Executive Director within 30 calendar days of 
the date the preliminary notice of proposed action was received by the 
laboratory. The laboratory may respond by accepting responsibility, 
explaining extenuating circumstances, and/or providing rebuttal 
evidence. The laboratory also may ask for a meeting with the Executive 
Director or his designee to discuss the proposed action.
    (B) Final notice.
    (1) Based on nonresponse. If the laboratory does not respond to the 
preliminary notice of proposed action, the Executive Director will issue 
a final notice of adverse determination within 60 calendar days of the 
date the preliminary notice of proposed action was received by the 
laboratory. The final notice of adverse determination will state the 
specific grounds for the adverse determination, direct the laboratory to 
cease performing any Customs-accredited functions, and advise the 
laboratory that it may choose to pursue one of the two options provided 
at paragraphs (k)(2)(i)(A) and (B) of this section.
    (2) Based on response. If the laboratory files a timely response, 
the Executive Director will issue a final determination regarding the 
status of the laboratory's accreditation within 30 calendar days of the 
date the laboratory's response is received by the Executive Director. If 
this final determination is adverse to the laboratory, then the final 
notice of adverse determination will state the specific grounds for the 
adverse action, advise the laboratory to cease performing any functions 
requiring Customs accreditation, and advise the laboratory that it may 
choose to pursue one of the two options provided at paragraphs 
(k)(2)(i)(A) and (B) of this section.
    (3) Publication of final notices of adverse determination. Any final 
notices of adverse determination issued by the Executive Director 
resulting in a laboratory being directed to cease performing Customs-
accredited functions will be published in the Federal Register and 
Customs Bulletin and the notice published will include the effective

[[Page 181]]

date, duration, and scope of the determination.
    (4) Appeal decision. The Assistant Commissioner will issue a 
decision on the appeal within 30 calendar days of the date the appeal is 
received. If the appeal decision is adverse to the laboratory, then the 
decision notice will advise the laboratory that it may choose to pursue 
one of the following two options:
    (i) Submit a new application for accreditation, in accordance with 
the provisions of paragraph (f)(1) of this section, 120 days after the 
date of the appeal decision; or
    (ii) File an action with the Court of International Trade, pursuant 
to chapter 169 of title 28, United States Code, within 60 days of the 
date of the appeal decision.

[T.D. 99-67, 64 FR 48534, Sept.7, 1999; T.D. 99-67, 65 FR 10009, 10010, 
Feb. 25, 2000]



Sec. 151.13  Approval of commercial gaugers.

    This section sets forth the requirements for commercial gaugers to 
obtain approval by Customs for the measuring of certain merchandise, and 
explains the operation of such approved gaugers. This section also 
provides for the imposition of approval and reapproval fees, sets forth 
grounds for the suspension or revocation of approval, and provides for 
the imposition of a monetary penalty for an approved commercial gauger 
that fails to adhere to the provisions of this section.
    (a) What is a ``Customs-approved gauger''? ``Commercial gaugers'' 
are individuals and commercial organizations that measure, gauge, or 
sample merchandise (usually merchandise in bulk form) and who deal 
mainly with animal and vegetable oils, petroleum, petroleum products, 
and bulk chemicals. A ``Customs-approved gauger'' is a commercial 
concern, within the United States, that has demonstrated, to the 
satisfaction of the Executive Director (defined at Sec. 151.12(a)), 
pursuant to this section, the capability to perform certain gauging and 
measurement procedures for certain commodities. Customs approval extends 
only to the performance of such functions as are vested in, or delegated 
to, Customs.
    (b) What are the obligations of a Customs-approved gauger? A 
commercial gauger approved by Customs agrees to the following conditions 
and requirements:
    (1) To comply with the requirements of part 151, Customs Regulations 
(19 CFR part 151), and to conduct professional services in conformance 
with approved standards and procedures, including procedures which may 
be required by the Commissioner of Customs or the Executive Director;
    (2) To have no interest in or other connection with any business or 
other activity which might affect the unbiased performance of duties as 
a Customs-approved gauger. It is understood that this does not prohibit 
acceptance of the usual fees for professional services;
    (3) To maintain the ability, i.e., the instrumentation, equipment, 
qualified staff, facilities, etc., to perform the services for which the 
gauger is approved, and allow the Executive Director to evaluate that 
ability on a periodic basis by such means as on-site inspections, 
demonstrations of gauging procedures, and reviews of submitted records;
    (4) To retain those gauger records beyond the five-year record-
retention period specified by Customs as necessary to address matters 
concerned in pending litigation, and, if gauger operations or approval 
cease, to contact Customs immediately regarding the disposition of 
records retained;
    (5) To promptly investigate any circumstance which might affect the 
accuracy of work performed as an approved gauger, to correct the 
situation immediately, and to notify both the port director and the 
Executive Director of such matters, their consequences, and any 
corrective action taken or that needs to be taken; and
    (6) To immediately notify both the port director and the Executive 
Director of any attempt to impede, influence, or coerce gauger personnel 
in the performance of their duties, or of any decision to terminate 
gauger operations or approval status. Further, within 5 days of any 
changes involving legal name, address, ownership, parent-subsidiary 
relationships, bond, other offices or sites, or approved signatories

[[Page 182]]

to notify the Executive Director by certified mail.
    (c) What are the approved measurement procedures? Customs-approved 
gaugers must comply with appropriate procedures published by such 
professional organizations as the American Society for Testing and 
Materials (ASTM) and the American Petroleum Institute (API), unless the 
Executive Director gives written permission to use an alternate method. 
Alternative methods will be considered and approved on a case-by-case 
basis.
    (d) How would a commercial gauger become a Customs-approved gauger? 
(1) What should an application contain? An application for Customs 
approval must contain the following information:
    (i) The applicant's legal name and the address of its principal 
place of business and any other facility out of which it will work;
    (ii) Detailed statements of ownership and any partnerships, parent-
subsidiary relationships, or affiliations with any other domestic or 
foreign organizations, including, but not limited to, importers, 
producers, refiners, Customs brokers, or carriers;
    (iii) A statement of financial condition;
    (iv) If a corporation, a copy of the articles of incorporation and 
the names of all officers and directors;
    (v) The names, titles, and qualifications of each person who will be 
authorized to sign or approve gauging reports on behalf of the 
commercial gauger;
    (vi) A complete description of the applicant's facilities, 
instruments, and equipment;
    (vii) An express agreement that if notified by Customs of pending 
approval to execute a bond in accordance with part 113, Customs 
Regulations (19 CFR part 113), and submit it to the Customs port nearest 
to the applicant's main office. (The limits of liability on the bond 
will be established by the Customs port in consultation with the 
Executive Director. In order to retain Customs approval, the gauger must 
maintain an adequate bond, as determined by the port director);
    (viii) An express agreement to be bound by the obligations contained 
in paragraph (b) of this section; and,
    (ix) A nonrefundable pre-payment equal to 50 percent of the fixed 
approval fee, as published in the Federal Register and Customs Bulletin, 
to cover preliminary processing costs. Further, the applicant agrees to 
pay Customs within 30 days of notification of preliminary approval the 
associated charges assessed for approval, i.e., those charges for actual 
travel and background investigation costs, and the balance of the fixed 
approval fee.
    (2) Where should an application be sent? A commercial gauger seeking 
approval or an extension of an existing approval must send a letter of 
application to the U.S. Customs Service, Attention: Executive Director, 
Laboratories & Scientific Services, 1300 Pennsylvania Ave., NW, 
Washington, D.C. 20229.
    (3) How will an application be reviewed?
    (i) Determination of competence. The Executive Director will 
determine the applicant's overall competence, independence, and 
character by conducting on-site inspections, which may include 
demonstrations by the applicant of gauging procedures and a review of 
records submitted, and background investigations. The Executive Director 
may also conduct proficiency testing through check samples.
    (ii) Evaluation of technical and operational requirements. Customs 
will determine whether the following technical and operational 
requirements are met:
    (A) Equipment. The facility must be equipped with all of the 
instruments and equipment needed to conduct approved services. The 
gauger must ensure that all instruments and equipment are properly 
calibrated, checked, and maintained.
    (B) Facilities. The facility must have, at a minimum, adequate 
space, lighting, and environmental controls to ensure compliance with 
the conditions prescribed for appropriate measurements.
    (C) Personnel. The facility must be staffed with persons having the 
necessary education, training, knowledge, and experience for their 
assigned functions (e.g., maintaining equipment, calibrating 
instruments, performing gauging services, evaluating gauging results, 
and signing gauging reports on

[[Page 183]]

behalf of the commercial gauger). In general, each technical staff 
member should have, at a minimum, six months training and experience in 
gauging.
    (e) How will an applicant be notified concerning approval?
    (1) Notice of approval or nonselection. When Customs evaluation of a 
gauger's credentials is completed, the Executive Director will notify 
the gauger in writing of its preliminary approval or nonselection. 
(Final approval determinations will not be made until the applicant has 
satisfied all bond requirements and made payment on all assessed charges 
and the balance of the applicable approval fee). All final notices of 
approval, reapproval, or extension of existing Customs approval will be 
published in the Federal Register and Customs Bulletin.
    (2) Grounds for nonselection. The Executive Director may deny a 
gauger's application for any of the following reasons:
    (i) The application contains false or misleading information 
concerning a material fact;
    (ii) The gauger, a principal of the gauging facility, or a person 
the Executive Director determines is exercising substantial ownership or 
control over the gauger operation is indicted for, convicted of, or has 
committed acts which would:
    (A) Under United States federal or state law, constitute a felony or 
misdemeanor involving misstatements, fraud, or a theft-related offense; 
or
    (B) Reflect adversely on the business integrity of the applicant;
    (iii) A determination is made that the gauger-applicant does not 
possess the technical capability, have adequate facilities, or 
management to perform the approved methods of measurement for Customs 
purposes;
    (iv) A determination is made that the gauger has submitted false 
reports or statements concerning the measurement of merchandise, or that 
the applicant was subject to sanctions by state, local, or professional 
administrative bodies for such conduct;
    (v) Nonpayment of assessed charges and the balance of the fixed 
approval fee; or
    (vi) Failure to execute a bond in accordance with part 113 of this 
chapter.
    (3) Adverse approval decisions; appeal procedures. (i) Preliminary 
notice. A gauger which is not selected for approval will be sent a 
preliminary notice of nonselection. The preliminary notice of 
nonselection will state the specific grounds for the proposed 
nonselection decision and advise the gauger that it may file a response 
addressing the grounds for the action proposed with the Executive 
Director within 30 calendar days of the date the preliminary notice of 
nonselection was received by the gauger.
    (ii) Final notice. (A) Based on nonresponse. If the gauger does not 
respond to the preliminary notice, the Executive Director will issue a 
final notice of nonselection within 60 calendar days of the date the 
preliminary notice of nonselection was received by the gauger applicant. 
The final notice of nonselection will state the specific grounds for the 
nonselection and advise the gauger that it may choose to pursue one of 
the following two options:
    (1) Submit a new application for approval, in accordance with the 
provisions of paragraph (d)(1) of this section, 180 days after the date 
of the final notice of nonselection; or
    (2) Administratively appeal the final notice of nonselection to the 
Assistant Commissioner within 30 calendar days of the date of the final 
notice of nonselection.
    (B) Based on response. If the gauger files a timely response, the 
Executive Director will issue a final determination regarding the 
gauger's approval within 30 calendar days of the date the applicant's 
response is received by the Executive Director. If this final 
determination is adverse to the gauger, then the final notice of 
nonselection will state the specific grounds for nonselection and advise 
the gauger that it may choose to pursue one of the two options provided 
at paragraphs (e)(3)(ii)(A)(1) and (2) of this section.
    (iii) Appeal decision. The Assistant Commissioner will issue a 
decision on the appeal within 30 calendar days of the date the appeal is 
received. If the appeal decision is adverse to the gauger, then the 
decision notice will advise the gauger that it may choose to pursue one 
of the following two options:

[[Page 184]]

    (A) Submit a new application for approval, in accordance with the 
provisions of paragraph (d)(1) of this section, 120 days after the date 
of the appeal decision; or
    (B) File an action with the Court of International Trade, pursuant 
to chapter 169 of title 28, United States Code, within 60 days of the 
date of the appeal decision.
    (f) What are the approval/reapproval fee requirements?
    (1) In general. A fixed fee, representing Customs administrative 
overhead expense, will be assessed for each application for approval or 
reapproval. In addition, associated assessments, representing the actual 
costs associated with travel and per diem of Customs employees related 
to verification of application criteria and background investigations 
will be charged. The combination of the fixed fee and associated 
assessments represent reimbursement to Customs for costs related to 
approval and reapproval. The fixed fee will be published in the Customs 
Bulletin and the Federal Register. Based on a review of the actual costs 
associated with the program, the fixed fee may be adjusted periodically; 
any changes will be published in the Customs Bulletin and the Federal 
Register.
    (i) Approval fees. A nonrefundable pre-payment equal to 50 percent 
of the fixed approval fee to cover preliminary processing costs must 
accompany each application for approval. Before a gauger will be 
approved, it must submit to Customs, at the address specified in the 
billing, within the 30 day billing period the associated charges 
assessed for the approval and the balance of the fixed approval fee.
    (ii) Reapproval fees. Before a gauger will be reapproved, it must 
submit to Customs, at the billing address specified, within the 30 day 
billing period, the fixed reapproval fee.
    (2) Disputes. In the event a gauger disputes the charges assessed 
for travel and per diem costs associated with scheduled inspection 
visits, it may file an appeal within 30 calendar days of the date of the 
assessment with the Executive Director. The appeal letter must specify 
which charges are in dispute and provide such supporting documentation 
as may be available for each allegation. The Executive Director will 
make findings of fact concerning the merits of an appeal and communicate 
the agency decision to the gauger in writing within 30 calendar days of 
the date of the appeal.
    (g) Can existing Customs-approved gaugers continue to operate? 
Commercial gaugers approved by the Executive Director prior to December 
8, 1993, will retain approval under these regulations provided that they 
conduct their business in a manner consistent with the administrative 
portions of this section. This paragraph does not pertain to any gauger 
which has had its approval suspended or revoked. Gaugers which have had 
their approvals continued under this section will have their status 
reevaluated on their next triennial inspection date which is no earlier 
than three years after the effective date of this regulation. At the 
time of reapproval, these gaugers must meet the requirements of this 
section and remit to Customs, at the address specified in the billing, 
within the 30 day billing period the fixed reapproval fee. Failure to 
meet these requirements will result in revocation or suspension of the 
approval.
    (h) How will Customs-approved gaugers operate?
    (1) Reports. (i) Contents of reports. The measurement results from a 
Customs-approved gauger that are submitted by an importer of record with 
respect to merchandise in an entry, in the absence of measurements 
conducted by Customs, will be accepted by Customs, provided that the 
importer of record certifies that the measurement was of the merchandise 
in the entry. All reports must measure net landed quantity, except in 
the case of crude petroleum of Heading 2709, Harmonized Tariff Schedule 
of the United States (HTSUS), which may be measured by gross quantity. 
Reports must use the appropriate HTSUS units of quantity, e.g., liters, 
barrels, or kilograms.

------------------------------------------------------------------------
            HTSUS                    Product          Unit of quantity
------------------------------------------------------------------------
Headings 1501-1515..........  Animal and vegetable  Kilogram.
                               oils.

[[Page 185]]

 
Subheadings 2707.10-2707.30   Benzene, toluene and  Liter.
 and 2902.20-2902.44.          xylene.
Heading 2709................  Crude Petroleum.....  Barrel.
Heading 2710 (various         Fuel oils, motor      Barrel.
 subheadings).                 oils, kerosene,
                               naphtha,
                               lubricating oils.
Chapter 29 (various           Organic compounds in  Kilogram, liter,
 subheadings).                 bulk and liquid       etc.
                               form.
------------------------------------------------------------------------

    (ii) Status of commercial reports where Customs also gauges 
merchandise. Nothing in these regulations will preclude Customs from 
gauging a shipment which has been gauged by a Customs-approved gauger at 
the request of an importer. In cases where a shipment has been gauged by 
both Customs and a Customs-approved gauger, all Customs actions will be 
based upon the gauging reports issued by Customs, unless the Executive 
Director advises other actions. If Customs gauges merchandise, it will 
release the report of its measurements to the importer of record or its 
agent upon request unless the gauging information is proprietary to the 
holder of a copyright or patent, or developed by Customs for enforcement 
purposes.
    (2) Recordkeeping requirements. Customs-approved gaugers must 
maintain records of the type normally kept in the ordinary course of 
business in accordance with the provisions of this chapter and any other 
applicable provisions of law, and make them available during normal 
business hours for Customs inspection. In addition, these gaugers must 
maintain all records necessary to permit the evaluation and verification 
of all Customs-related work, including, as appropriate, those described 
below. All records must be maintained for five years, unless the gauger 
is notified in writing by Customs that a longer retention time is 
necessary for particular records. Electronic data storage and 
transmission may be approved by Customs.
    (i) Transaction records. Records for each Customs-related 
transaction must be readily accessible and have the following:
    (A) A unique identifying number;
    (B) The date and location where the transaction occurred;
    (C) The identity of the product (e.g., crude oil);
    (D) The name of the client;
    (E) The source of the product (e.g., name of vessel, flight number 
of airline); and
    (F) If available, the Customs entry date, entry number, and port of 
entry and the names of the importer, exporter, manufacturer, and 
country-of-origin.
    (ii) Major equipment records. Records for each major piece of 
equipment used in Customs-related work must identify the name and type 
of instrument, the manufacturer's name, the instrument's model and any 
serial numbers, and the occurrence of all servicing performed on the 
equipment or instrument, to include recalibration and any repair work, 
identifying who performed the service and when.
    (iii) Records of gauging procedures. The Customs-approved gauger 
must maintain complete and up-to-date copies of all approved gauging 
procedures, calibration methods, etc., and must document the procedures 
that each staff member is authorized to perform. These procedures must 
be readily available to appropriate staff.
    (iv) Gauging records. The Customs-approved gauger must identify each 
transaction by transaction record number (see paragraph (h)(2)(i) of 
this section) and must maintain all information or data (such as 
temperatures, etc.) associated with each Customs-related gauging 
transaction. Each gauging record (i.e., the complete file of all data 
for each separate transaction) must be dated and initialed or signed by 
the staff member(s) who did the work.
    (v) Gauging reports. Each gauging report submitted to Customs must 
include:
    (A) The name and address of the Customs-approved gauger;
    (B) A description and identification of the transaction, including 
its unique identifying number;

[[Page 186]]

    (C) The designations of each gauging procedure used;
    (D) The gauging report itself (i.e., the quantity of the 
merchandise);
    (E) The date of the report; and
    (F) The typed name and signature of the person accepting technical 
responsibility for the gauging report (i.e., an approved signatory).
    (3) Representation of Customs-approved status. Commercial gaugers 
approved by Customs must limit statements or wording regarding their 
approval to an accurate description of the commodities for which 
approval has been obtained. Use of terms other than those appearing in 
the notice of approval (see paragraph (e) of this section) is 
prohibited.
    (4) Subcontracting prohibited. Customs-approved gaugers must not 
subcontract Customs-related work to non Customs-approved gaugers or non 
Customs-accredited laboratories, but may subcontract to other facilities 
that are Customs-approved/accredited and in good standing.
    (i) How can a gauger have its approval suspended or revoked or be 
required to pay a monetary penalty?
    (1) Grounds for suspension, revocation, or assessment of a monetary 
penalty. (i) In general. The Executive Director may immediately suspend 
or revoke a gauger's approval only in cases where the gauger's actions 
are intentional violations of any Customs law or when required by public 
health or safety. In other situations where the Executive Director has 
cause, the Executive Director will propose the suspension or revocation 
of a gauger's approval or propose a monetary penalty and provide the 
gauger with the opportunity to respond to the notice of proposed action.
    (ii) Specific grounds. A gauger's approval may be suspended or 
revoked, or a monetary penalty may be assessed because:
    (A) The selection was obtained through fraud or the misstatement of 
a material fact by the gauger;
    (B) The gauger, a principal of the gauging facility, or a person the 
port director determines is exercising substantial ownership or control 
over the gauger operation is indicted for, convicted of, or has 
committed acts which would: under United States federal or state law, 
constitute a felony or misdemeanor involving misstatements, fraud, or a 
theft-related offense; or reflect adversely on the business integrity of 
the applicant. In the absence of an indictment, conviction, or other 
legal process, the port director must have probable cause to believe the 
proscribed acts occurred;
    (C) Staff gauger personnel refuse or otherwise fail to follow any 
proper order of a Customs officer or any Customs order, rule, or 
regulation;
    (D) The gauger fails to operate in accordance with the obligations 
of paragraph (b) of this section;
    (E) A determination is made that the gauger is no longer technically 
or operationally proficient at performing the approved methods of 
measurement for Customs purposes;
    (F) The gauger fails to remit to Customs, at the billing address 
specified, within the 30 day billing period the associated charges 
assessed for the approval and the balance of the fixed approval fee;
    (G) The gauger fails to maintain its bond;
    (H) The gauger fails to remit to Customs, at the billing address 
specified, within the 30 day billing period the fixed reapproval fee; or
    (I) The gauger fails to remit any monetary penalty assessed under 
this section.
    (iii) Assessment of monetary penalties. The assessment of a monetary 
penalty under this section, may be in lieu of, or in addition to, a 
suspension or revocation of approval under this section. The monetary 
penalty may not exceed $100,000 per violation and will be assessed and 
administered pursuant to published guidelines. Any monetary penalty 
under this section can be in addition to the recovery of:
    (A) Any loss of revenue, in cases where the gauger intentionally 
falsified the gauging report in collusion with the importer, pursuant to 
19 U.S.C. 1499(b)(1)(B)(i); or
    (B) Liquidated damages assessed under the gauger's Customs bond.
    (2) Notice of adverse action. When a decision to suspend or revoke 
approval, and/or assess a monetary penalty is

[[Page 187]]

made, the Executive Director will immediately notify the gauger in 
writing, indicating whether the action is effective immediately or is 
proposed.
    (i) Immediate suspension or revocation. Where the suspension or 
revocation of approval is immediate, the Executive Director will issue a 
final notice of adverse determination. The final notice of adverse 
determination will state the specific grounds for the immediate 
suspension or revocation, direct the gauger to cease performing any 
Customs-approved functions, and advise the gauger that it may choose to 
pursue one of the following two options:
    (A) Submit a new application for approval, in accordance with the 
provisions of paragraph (d)(1) of this section, 180 days after the date 
of the final notice of nonselection; or
    (B) Administratively appeal the final notice of adverse 
determination to the Assistant Commissioner within 30 calendar days of 
the date of the final notice of adverse determination.
    (ii) Proposed suspension, revocation, or assessment of monetary 
penalty.
    (A) Preliminary notice. Where the suspension or revocation of 
approval, and/or the assessment of a monetary penalty is proposed, the 
Executive Director will issue a preliminary notice of proposed action. 
The preliminary notice of proposed action will state the specific 
grounds for the proposed action, inform the gauger that it may continue 
to perform those functions requiring Customs-approval until the 
Executive Director's final notice is issued, and advise the gauger that 
it may file a response addressing the grounds for the action proposed 
with the Executive Director within 30 calendar days of the date the 
preliminary notice of proposed action was received by the gauger. The 
gauger may respond by accepting responsibility, explaining extenuating 
circumstances, and/or providing rebuttal evidence. The gauger also may 
ask for a meeting with the Executive Director or his designee to discuss 
the proposed action.
    (B) Final notice.
    (1) Based on nonresponse. If the gauger does not respond to the 
preliminary notice of proposed action, the Executive Director will issue 
a final notice of adverse determination within 60 calendar days of the 
date the preliminary notice of proposed action was received by the 
gauger. The final notice of adverse determination will state the 
specific grounds for the adverse determination, direct the gauger to 
cease performing any Customs-approved functions, and advise the gauger 
that it may choose to pursue one of the two options provided at 
paragraphs (i)(2)(i)(A) and (B) of this section.
    (2) Based on response. If the gauger files a timely response, the 
Executive Director will issue a final determination regarding the status 
of the gauger's approval within 30 calendar days of the date the 
gauger's response is received by the Executive Director. If this final 
determination is adverse to the gauger, then the final notice of adverse 
determination will state the specific grounds for the adverse action, 
advise the gauger to cease performing any functions requiring Customs 
approval, and advise the gauger that it may choose to pursue one of the 
two options provided at paragraphs (i)(2)(i))(A) and (B) of this 
section.
    (3) Publication of final notices of adverse determination.
    Any final notices of adverse determination issued by the Executive 
Director resulting in a gauger being directed to cease performing 
Customs-approved functions will be published in the Federal Register and 
Customs Bulletin and the notice published will include the effective 
date, duration, and scope of the determination.
    (4) Appeal decision. The Assistant Commissioner will issue a 
decision on the appeal within 30 calendar days of the date the appeal is 
received. If the appeal decision is adverse to the gauger, then the 
decision notice will advise the gauger that it may choose to pursue one 
of the following two options:
    (i) Submit a new application for approval, in accordance with the 
provisions of paragraph (d)(1) of this section, 120 days after the date 
of the appeal decision; or
    (ii) File an action with the Court of International Trade, pursuant 
to chapter 169 of title 28, United States Code, within 60 calendar days 
of the date of the appeal decision.

[T.D. 99-67, 64 FR 48539, Sept. 7, 1999; T.D. 99-67, 65 FR 10011, Feb. 
25, 2000]

[[Page 188]]



Sec. 151.14  Use of commercial laboratory tests in liquidation.

    The analysis method for crude petroleum contained in ASTM D96 or 
other approved analysis method and as determined by a Customs-accredited 
commercial laboratory shall be used for Customs purposes if the 
difference between the value found by the commercial laboratory and the 
value found by the Customs laboratory does not exceed 0.11 percent. If 
the difference exceeds this limit and the Customs-accredited commercial 
laboratory cannot establish that Customs is in error, then the Customs 
results shall be used.

[T.D. 90-78, 55 FR 40167, Oct. 2, 1990, as amended by T.D. 99-67, 64 FR 
48543, Sept. 7, 1999]



Sec. 151.15  Movement of merchandise to a centralized examination 
station.

    (a) Permission to transfer merchandise for examination. When a 
shipment requires examination at a centralized examination station 
(CES), Customs Form 3461, or Customs Form 3461 (ALT) for land border 
cargo, or an attachment to either, may be used to request permission to 
transfer the merchandise to a CES. The entry filer must write, type or 
stamp the following lines on the form or attachment, and must supply the 
information called for on the first three lines:

Containers to be transferred: ------ All or,
    Container 's ------, ------, ------[bdlarr]

To CES----------------------------------[bdlarr]

Approved by: U.S. Customs Inspector------[bdlarr]

Date----------------------------------[bdlarr]


Unless the port director exercises his authority pursuant to paragraph 
(d) of this section, the reviewing inspector will initial and date the 
form or attachment being used, or stamp one copy of the Customs Form 
3461 or 3461 (ALT) if required by the port director. A copy of this 
document will act as notification and authorization to the entry filer 
that the merchandise must be transferred to the importer-designated CES 
unless another CES is designated by the port director under paragraph 
(d) of this section.
    (b) Assumption of liability during transfer. Merchandise designated 
for examination may be transferred from the importing carrier's point of 
unlading or from a bonded facility, to a CES, only if the transfer takes 
place under bond. The entry filer shall select one of the following 
bonded movements for the transfer to the CES unless the type of bonded 
movement to be used is specified by the port director under paragraph 
(d) of this section:
    (1) If the merchandise is tranferred directly to a CES by an 
importing carrier, the importing carrier shall remain liable under the 
terms of its international carrier bond for the proper safekeeping and 
delivery of the merchandise until it is receipted for by the CES 
operator.
    (2) If the merchandise is transferred directly from a bonded 
carrier's facility to a CES or is delivered directly to the CES by a 
bonded carrier, the bonded carrier shall remain liable under the terms 
of its custodial bond for the proper safekeeping and delivery of the 
merchandise until it is receipted for by the CES operator.
    (3) If containerized cargo, including excess loose cargo that is 
part of the containerized cargo, is transferred to a CES operator's own 
facility using his own vehicles, the CES operator shall be liable under 
the terms of his custodial bond for the proper safekeeping and delivery 
of the merchandise to the CES facility.
    (4) If the importer or his agent acting as importer of record 
transfers the merchandise to a CES, that importer or agent shall assume 
liability under his importation and entry bond (see Sec. 151.7(d) of 
this part) for the proper transfer of the merchandise until it is 
receipted for by the CES operator.
    (c) Annual blanket transfer. Port directors may institute an annual 
blanket transfer application procedure to facilitate any of the bonded 
movements described in paragraph (b) of this section.
    (d) Designation of bonded movement and CES to be used. In the event 
the port director deems it necessary, he may direct the type of bonded 
movement to be used to transfer merchandise to a CES and may designate 
the CES at which examination must take place. In either case the port 
director's action will be noted on the Customs

[[Page 189]]

Form 3461 or 3461 (ALT) or attachment thereto.

[T.D. 93-6, 58 FR 5606, Jan. 22, 1993]



Sec. 151.16  Detention of merchandise.

    (a) Exemptions from applicability. The provisions of this section 
are not applicable to detentions effected by Customs on behalf of other 
agencies of the U.S. Government in whom the determination of 
admissibility is vested and to detentions arising from possibly 
piratical copies (see part 133, subpart E, of this chapter) or import of 
goods bearing marks which are confusingly similar to recorded trademarks 
or restricted gray market merchandise (see part 133, subpart C, of this 
chapter.)
    (b) Decision to detain or release. Within the 5-day period 
(excluding weekends and holidays) following the date on which 
merchandise is presented for Customs examination, Customs shall decide 
whether to release or detain merchandise. Merchandise which is not 
released within such 5-day period shall be considered to be detained 
merchandise. For purposes of this section, merchandise shall be 
considered to be presented for Customs examination when it is in a 
condition to be viewed and examined by a Customs officer. Mere 
presentation to the examining officer of a cargo van, container or 
instrument of international traffic in which the merchandise to be 
examined is contained will not be considered to be presentation of 
merchandise for Customs examination for purposes of this section. Except 
when merchandise is examined at the public stores, the importer shall 
pay all costs relating to the preparation and transportation of 
merchandise for examination.
    (c) Notice of detention. If a decision to detain merchandise is 
made, or the merchandise is not released within the 5-day period, 
Customs shall issue a notice to the importer or other party having an 
interest in such merchandise no later than 5 days (excluding weekends 
and holidays) after such decision or failure to release (see paragraph 
(b) of this section). Issuance of a notice of detention is not to be 
construed as a final determination as to admissibility of the 
merchandise. The notice shall be prepared by the Customs officer 
detaining the merchandise and shall advise the importer or other 
interested party of the:
    (1) Initiation of the detention, including the date the merchandise 
was presented for examination;
    (2) Specific reason for the detention;
    (3) Anticipated length of the detention;
    (4) Nature of the tests or inquiries to be conducted; and
    (5) Nature of any information which, if supplied to the Customs 
Service, may accelerate the disposition of the detention.
    (d) Providing testing results. Upon written request by the importer 
or other party having an interest in detained merchandise, Customs shall 
provide copies of the results of any testing conducted on the 
merchandise together with a description of the testing procedures and 
methodologies used (unless such procedures or methodologies are 
proprietary to the holder of a copyright or patent or were developed by 
Customs for enforcement purposes). The results and test description 
shall be in sufficient detail to permit the duplication and analysis of 
the testing and the results.
    (e) Final determinations. A final determination with respect to 
admissibility of detained merchandise will be made within 30 days from 
the date the merchandise is presented for Customs examination. Such a 
determination may be the subject of a protest.
    (f) Effect of failure to make a determination. The failure by 
Customs to make a final determination with respect to the admissibility 
of detained merchandise within 30 days after the merchandise has been 
presented for Customs examination, or such longer period if specifically 
authorized by law, shall be treated as a decision by Customs to exclude 
the merchandise for purposes of section 514(a)(4) of the Tariff Act of 
1930, as amended (19 U.S.C. 1514(a)(4)). Such a deemed exclusion may be 
the subject of a protest.
    (g) Failure to decide protest. If a protest which is filed as a 
result of a final determination or a deemed exclusion of detained 
merchandise is not allowed or denied in whole or in part before the 30th 
day after the day on which the protest was filed, it shall be treated as

[[Page 190]]

having been denied on such 30th day for purposes of 28 U.S.C. 1581.
    (h) Decision before commencement of court action. Customs may at any 
time after a deemed denial of a protest as provided in paragraph (g) of 
this section, but before commencement of a court action as provided in 
paragraph (i) of this section, grant a protest and permit release of 
detained merchandise, or deny a protest in accordance with Sec. 174.30 
of this chapter.
    (i) Commencement of court action; burden of proof and decisions of 
the court. Once a court action respecting a detention is commenced, 
unless Customs establishes by a preponderance of the evidence that an 
admissibility decision has not been reached for good cause, the court 
shall grant the appropriate relief which may include, but is not limited 
to, an order to cancel the detention and release the merchandise.
    (j) Seizure and forfeiture; denial of entry or exportation. If 
otherwise provided by law, detained merchandise may be seized and 
forfeited. In lieu of seizure and forfeiture, where authorized by law, 
Customs may deny entry and permit the merchandise to be exported, with 
the importer responsible for paying all expenses of exportation.

[T.D. 99-65, 64 FR 43611, Aug. 11, 1999]



                 Subpart B_Sugars, Sirups, and Molasses



Sec. 151.21  Definitions.

    The following are general definitions for the purposes of this 
subpart in applying the provisions of Chapters 17 and 18, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202):
    (a) Degree. ``Degree'' or ``sugar degree'' means an International 
Sugar Degree as determined by polarimetric test performed in accordance 
with procedures recognized by the International Commission for Uniform 
Methods of Sugar Analysis. This test discloses the percentage of sucrose 
contained in the sugar.
    (b) Total sugars. ``Total sugars'' means the sum of the sucrose, the 
raffinose, and the reducing sugars.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51268, Dec. 21, 1988]



Sec. 151.22  Estimated duties on raw sugar.

    Estimated duties shall be taken on raw sugar, as defined in 
Subheading Note 1 to Chapter 17, Harmonized Tariff Schedule of the 
United States, on the basis of not less than 96[deg] polariscopic test 
unless the invoice shows that the sugar is of a lower grade than that of 
the ordinary commercial shipment.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51268, Dec. 21, 1988]



Sec. 151.23  Allowance for moisture in raw sugar.

    Inasmuch as the absorption of sea water or moisture reduces the 
polariscopic test of sugar, there shall be no allowance on account of 
increased weight of raw sugar importations due to unusual absorption of 
sea water or other moisture while on the voyage of importation. Any 
portion of the cargo claimed by the importer to have absorbed sea water 
or moisture on the voyage of importation shall be weighed, sampled, and 
tested separately. No such claim shall be considered if made after the 
sugar claimed to have been damaged has been weighed.



Sec. 151.24  Unlading facilities for bulk sugar.

    When dutiable sugar is to be imported in bulk, a full description of 
the facilities to be used in unlading the sugar shall be submitted to 
the Commissioner of Customs as far as possible in advance of the date of 
importation, and special instructions will be issued as to the methods 
to be applied in weighing and sampling such sugar.



Sec. 151.25  Mixing classes of sugar.

    No regulations relative to the weighing, taring, sampling, 
classifying, and testing of imported sugar shall be so construed as to 
permit mixing together sugar of different classes, such as centrifugal, 
beet, molasses, or any sugar different in character from those 
mentioned, for the purpose of weighing, taring, sampling, or testing.

[[Page 191]]



Sec. 151.26  Molasses in tank cars.

    When molasses is imported in tank cars, the importer shall file with 
the port director a certificate showing whether there is any substantial 
difference either in the total sugars or the character of the molasses 
in the different cars.



Sec. 151.27  Weighing and sampling done at time of unlading.

    Sugar, sirup, and molasses requiring either weighing or sampling 
shall be weighed or sampled at the time of unlading. When such 
merchandise requires both weighing and sampling, these operations shall 
be performed simultaneously.



Sec. 151.28  Gauging of sirup or molasses discharged into storage tanks.

    (a) Plans of storage tank to be filed. When sirup or molasses is 
imported in bulk in tank vessels and is to be pumped or discharged into 
storage tanks, before the discharging is permitted there shall be filed 
with the port director a certified copy of the plans and gauge table of 
the storage tank showing all inlets and outlets and stating accurately 
the capacity in liters per centimeter of height of the tank from an 
indicated starting point.
    (b) Settling before gauging. After the discharge is completed, all 
inlets to the tank shall be carefully sealed and the sirup or molasses 
left undisturbed for a period not to exceed 20 days to allow for 
settling before being gauged. When a request for immediate gauging is 
made in writing by the importer, it shall be allowed by the port 
director.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 80-142, 45 
FR 36384, May 30, 1980; T.D. 89-1, 53 FR 51268, Dec. 21, 1988]



Sec. 151.29  Expense of unlading and handling.

    No expense incidental to the unlading, transporting, or handling of 
sugar, sirup, or molasses for convenient weighing, gaging, measuring, 
sampling, or marking shall be borne by the Government.



Sec. 151.30  Sugar closets.

    Sugar closets for samples shall be substantially built and secured 
by locks furnished by Customs. They shall be conveniently located as 
near as possible to the points of discharge they are intended to serve. 
They shall be provided by the owner of the premises on which they are 
located and shall be so situated that sugar, sirup, and molasses stored 
therein shall not be subjected to extremes of temperature or humidity.



Sec. 151.31  [Reserved]



               Subpart C_Petroleum and Petroleum Products



Sec. 151.41  Information on entry summary.

    On the entry summary for petroleum or petroleum products in bulk, 
the importer shall show the API gravity at 60[deg] Fahrenheit, in 
accordance with the current edition of the ASTM-IP Petroleum Measurement 
Tables (American Edition), approved by the American Society for Testing 
and Materials. The appropriate unabridged table shall be used in the 
reduction of volume to 60[deg] F. If the exact volumetric quantity 
cannot be determined in advance, the entry summary may be made for ``--
-- barrels, more or less'', but in no case may the estimate vary by more 
than three percent from the gross quantity unladen. The term ``barrels'' 
is defined in Chapter 27, Additional U.S. Note 7, Harmonized Tariff 
Schedule of the United States. The information required by this section 
also shall be shown on the entry summary permit if the entry summary is 
filed at the time of entry, and on each entry summary continuation sheet 
regardless of when the entry summary is filed.

[T.D. 80-142, 45 FR 36384, May 30, 1980, as amended by T.D. 82-224, 47 
FR 53728, Nov. 29, 1982; T.D. 89-1, 53 FR 51268, Dec. 21, 1988]



Sec. 151.42  Controls on unlading and gauging.

    (a) Methods of control. (1) Each port director shall establish 
controls and checks on the unlading and measurement of petroleum and 
petroleum products imported in bulk by vessel, truck, railroad car, 
pipeline, or other carrier. One of the following methods of control 
shall be employed:

[[Page 192]]

    (i) Customs-approved metering and sampling installations provided by 
the importer;
    (ii) Shore tank gauging; or
    (iii) Weighing for trucks and railroad cars.
    (2) Vessel ullages shall be taken in every case unless the port 
director determines that it is impracticable to do so for safety or 
technological reasons. Ullages may be taken for trucks and railroad cars 
if weighing or shore tank gauging is not available as a method of 
control. Vessel ullages will not be used to determine the quantity 
unladen unless none of the other methods provided for in this paragraph 
is available or adequate.
    (3) The metering and sampling installations described in paragraph 
(a)(1)(i) of this section are approved by Customs on a case-by-case 
basis. Importers seeking approval shall send a complete description of 
the installation to the port director who, with the concurrence of the 
Director, Laboratory & Scientific Services, or his designee, shall give 
approval or shall state, in writing, the reasons for disapproval. 
Approved installations are subject to periodic verification by Customs. 
Importers desiring to modify a Customs-approved installation shall 
obtain Customs approval beforehand.
    (b) Duties of Customs officers. Customs officers may perform or 
witness ullaging and gauging as follows:
    (1) Opening ullages.
    (2) Closing ullages of carriers which have not completely discharged 
cargo, or if an importer or carrier requests Customs to witness closing 
ullages because of special problems.
    (3) Shore tank gauges performed by company or related-party 
employees.
    (4) Between 5 and 10 per cent of shore tank gauges conducted by 
commercial gaugers.
    (5) Shore tank gauges, including those conducted by a commercial 
gauger if no carrier ullages are taken.
    (c) Manifest discrepancies. Manifest discrepancies (shortages and 
overages) shall be reported by or on behalf of the carrier in the manner 
specified in Sec. 4.12 of this chapter. If a reported discrepancy is 
not explained to the satisfaction of the port director, the master or 
other person in charge, or the owner of the vessel or vehicle, or any 
person directly or indirectly responsible for the discrepancy, will be 
subject to the imposition of the appropriate penalty under section 460, 
584, or 592, Tariff Act of 1930, as amended (19 U.S.C. 1460, 1584, 
1592).

[T.D. 80-142, 45 FR 36384, May 30, 1980, as amended by T.D. 82-224, 47 
FR 53728, Nov. 29, 1982; T.D. 87-39, 52 FR 9790, Mar. 26, 1987; T.D. 89-
1, 53 FR 51268, Dec. 21, 1988; T.D. 91-77, 56 FR 46115, Sept. 10, 1991]



Sec. 151.43  [Reserved]



Sec. 151.44  Storage tanks.

    (a) Plans and gauge tables. When petroleum or petroleum products 
subject to duty at a specific rate per barrel are imported in bulk in 
tank vessels and are to be transferred into shore storage tanks, both 
the plans of each shore tank showing all outlets and inlets and the 
gauge table for each tank showing its capacity in barrels per centimeter 
or tenth of a centimeter of height shall be certified as correct by the 
proprietor of the tank. One set of these plans and gauge tables so 
certified shall be kept on file at the plant of the oil company and 
shall be available at all times to Customs officers. Another certified 
set of the shore tank plans and gauge tables shall be filed with the 
port director for use in verifying the Customs officers' reports. The 
port director may require such additional sets of shore tank plans, 
including subsidiary pipeline plans, and gauge tables as he may deem 
necessary. The storage tank proprietor shall maintain the plans and 
gauge tables for 3 years after discontinuing use of the storage tanks as 
bonded warehouses for the storage of imported petroleum or petroleum 
products.
    (b) Tags required on valves. The inlet and outlet valves of each 
tank shall have tags of a permanent type affixed by the proprietor or 
lessee indicating the use of the valves.
    (c) Verification of gauge tables. Whenever he has reason to suspect 
their reliability, the port director may require the measurement and 
calibrations shown on the gauge tables to be verified by a Customs 
officer. If no qualified Customs officer is available,

[[Page 193]]

the port director may accept an independent certification verifying the 
measurements and calibrations. The independent verification shall be 
performed at the expense of the storage tank proprietor.

[T.D. 80-142, 45 FR 36384, May 30, 1980, as amended by T.D. 89-1, 53 FR 
51268, Dec. 21, 1988]



Sec. 151.45  Storage tanks bonded as warehouses.

    (a) Application. Tanks for the storage of imported petroleum or 
petroleum products in bulk may be bonded as warehouses of class 2 if to 
be used exclusively for the storage of petroleum or petroleum products 
belonging or consigned to the owner or lessee of the tank. In addition 
to the documents and bonds required to be filed with the application to 
bond (see Sec. 19.2 of this chapter), the certified plans and gauge 
tables required by Sec. 151.44 shall be filed.
    (b) Removal of nonbonded petroleum. If a bonded tank is not empty at 
the time the first importation of bonded petroleum or petroleum products 
is to be stored therein, the amount of nonbonded petroleum or petroleum 
products in the tank shall be withdrawn by the proprietor as soon as 
possible. The request to withdraw shall be in the form of a letter and 
no formal withdrawal need be filed. Domestic or duty-paid petroleum or 
petroleum products shall not thereafter be stored in the tank as long as 
the tank remains bonded.
    (c) Information on warehouse withdrawal. Warehouse withdrawals of 
petroleum or petroleum products from bonded tanks shall show the 
information specified in Sec. 151.41, as well as the designation of the 
tank from which the merchandise is to be withdrawn. Such withdrawals may 
be made for ``---- U.S. gallons, more or less'', but in no case may the 
estimate vary by more than three percent from the gross quantity 
unladen.

[T.D. 80-142, 45 FR 36384, May 30, 1980, as amended by T.D. 87-39, 52 FR 
9790, Mar. 26, 1987]



Sec. 151.46  Allowance for detectable moisture and impurities.

    An allowance for all detectable moisture and impurities present in 
or upon imported petroleum or petroleum products shall be made in 
accordance with Sec. 158.13 of this chapter.

[T.D. 90-78, 55 FR 40167, Oct. 2, 1990]



Sec. 151.47  Optional entry of net quantity of petroleum or petroleum 
products.

    Instead of stating the gross quantity of petroleum or petroleum 
products on the entry summary, the importer may state the net quantity. 
The analytical report from the Customs-accredited commercial laboratory 
shall be filed with the entry summary.

[T.D. 87-39, 52 FR 9790, Mar. 26, 1987, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



     Subpart D_Metal-Bearing Ores and Other Metal-Bearing Materials



Sec. 151.51  Sampling requirements.

    (a) General. Except as provided in paragraph (b) of this section, 
when metal-bearing ores and other metal-bearing materials which are 
classifiable under Chapter 26, Harmonized Tariff Schedule of the United 
States (HTSUS) (19 U.S.C. 1202), are entered for consumption or 
warehousing at the port of first arrival, they shall be sampled for 
assay and moisture purposes in accordance with Sec. 151.52. If proper 
facilities for weighing or sampling are not available at the port of 
entry, the merchandise shall be transported under bond to the place of 
sampling. The sampling or weighing of metal-bearing ores or materials at 
any place other than the port of entry shall be at the expense of the 
parties in interest.
    (b) Ores of low metal content. When, on the basis of invoice 
information, the nature of any available sample, knowledge of prior 
importations of similar materials, and other data, the port director is 
satisfied that metal-bearing ores entered under heading 2617, HTSUS, as 
containing less than 1 percent of metals dutiable under headings 2603, 
2607, and 2608, HTSUS, are properly entered, he may liquidate the entry 
on the basis of the assay information contained in the entry papers. 
However, the sampling and testing procedures prescribed in Sec. Sec. 
151.52 and 151.54

[[Page 194]]

shall be followed at random intervals for verification purposes.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 151.52  Sampling procedures.

    (a) Commercial samples taken under Customs supervision. 
Representative commercial moisture and assay samples shall be taken 
under Customs supervision for testing by the Customs laboratory. The 
samples used for the moisture test shall be representative of the 
shipment at the time the shipment is weighed for Customs purposes. When 
a shipment is made up of a number of lots a composite sample of the 
shipment shall be drawn for assay, providing composite sampling is 
feasible and assays of the individual lots are not required for tariff 
classification or other Customs purposes. The composite sample shall 
consist of proportional parts by weight of the prepared sample drawn 
from the various lots represented and shall be thoroughly mixed.
    (b) Commercial samples furnished by importer. When commercial 
samples cannot be taken under Customs supervision, the importer shall be 
required to furnish a verified commercial moisture sample and prepared 
assay sample certified to be representative of the shipment at the time 
the shipment was weighed for Customs purposes. The samples shall be in 
appropriate containers, properly labeled, and shall be accompanied by a 
statement including:
    (1) Entry number,
    (2) Lots represented,
    (3) Kind of ore or material,
    (4) Date and place where sampling occurred, and
    (5) The name and address of the sampling concern.
    (c) Samples taken by Customs. Where no commercial samples have been 
taken, the port director shall take representative samples from 
different parts of the shipment.



Sec. 151.53  Sample lockers.

    A suitable place or containers shall be provided for the safekeeping 
of all Customs samples under Customs lock or seal.



Sec. 151.54  Testing by Customs laboratory.

    Samples taken in accordance with Sec. 151.52 shall be promptly 
forwarded to the appropriate Customs laboratory for testing in 
accordance with commercial methods. The port director may secure from 
the importer a certified copy of the commercial settlement tests for 
moisture and for assay which shall be transmitted with the commercial 
samples to the Custom laboratory. If the Customs tests are not in 
substantial agreement with the settlement tests, the Customs laboratory 
director shall review his tests. The Customs tests shall be used in 
determining the final duties on the merchandise, except that the 
settlement tests shall be used if, in the opinion of the Customs 
laboratory director:
    (a) The settlement and Customs tests differ by no more than is to be 
expected between qualified laboratories, and
    (b) The use of the settlement test results will not require a 
different tariff classification or rate of duty than is indicated by the 
Customs test.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 87-39, 52 FR 
9791, Mar. 26, 1987]



Sec. 151.55  Deductions for loss during processing.

    Deductions for the loss of copper, lead, or zinc content during 
processing, as authorized by Chapter 26, Additional U.S. Note 1, 
Harmonized Tariff Schedule of the United States (19 U.S.C. 1202), shall 
be made by the port director in the liquidation of any entry only if the 
importer has followed the procedures set forth in that headnote. See 
Sec. Sec. 19.17 through 19.25 of this chapter for procedures applicable 
to bonded smelting and refining warehouses.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



                         Subpart E_Wool and Hair



Sec. 151.61  Definitions.

    The following are general definitions for the purposes of this 
subpart:
    (a) Clean kg. `Clean kg' means kilograms of clean yield as defined 
in paragraph (b) of this section.

[[Page 195]]

    (b) Clean yield. Except for the purposes of carbonized fibers, 
``Clean yield'' means the absolute clean content (that is, all that 
portion of the merchandise which consists exclusively of wool or hair 
free of all vegetable and other foreign material, containing by weight 
12 percent of moisture and 1.5 percent of material removable from the 
wool or hair by extraction with alcohol, and having an ash content of 
not over 0.5 percent by weight), less an allowance, equal by weight to 
0.5 percent of the absolute clean content plus 60 percent of the 
vegetable matter present, but not exceeding 15 percent by weight of the 
absolute clean content, for wool or hair that would ordinarily be lost 
during commercial cleaning operations.
    (c) For the purposes of carbonized fibers, the term clean yield 
means the condition as entered.
    (d) Sampling unit. ``Sampling unit'' means all the similar packages 
covered by one entry or withdrawal containing wool or hair of the same 
kind or same general condition and character, produced in the same 
country, packed in substantially the same manner, and entered as or 
found to be subject to the same rate of entry.
    (e) General sample. ``General sample'' means the composite of the 
individual portions of wool or hair drawn from a sampling unit.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 151.62  Information on invoices.

    Invoices of wool or hair subject to duty at a rate per clean 
kilogram under Chapter 51, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), shall show the following detailed information 
in addition to other information required:
    (a) Condition, that is, whether in the grease, washed, pulled, on 
the skin, scoured, carbonized, burr-picked, willowed, handshaken, or 
beaten;
    (b) Whether free of vegetable matter, practically free, slightly 
burry, medium burry, heavy burry;
    (c) Whether in the fleece, skirted, matchings, or sorted;
    (d) Length, that is, whether super combing, ordinary combing, 
clothing, or filling;
    (e) Country of origin, and, if possible, the province, section, or 
locality of production;
    (f) If wool, the type symbol by which it is bought and sold in the 
country of origin and the grade of each lot covered by the invoice, 
specifying the standard or basis used, that is, whether U.S. Official 
Standards or the commercial terms to designate grade in the country of 
shipment; and
    (g) Net weight of each lot of wool or hair covered by the invoice in 
the condition in which it is shipped, and the shipper's estimate of the 
clean yield of each lot by weight or by percentage.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 151.63  Information on entry summary.

    Each entry summary covering wool or hair subject to duty at a rate 
per clean kilogram under Chapter 51, Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202), shall show as to each lot of wool or 
hair covered thereby, in addition to other information required, the 
total estimated or actual net weight of the wool or hair in its 
condition as imported, its total estimated clean yield in kilograms, and 
the estimated percentage clean yield. (19 U.S.C. 1484.)

[T.D. 89-1, 53 FR 51269, Dec. 21, 1988]



Sec. 151.64  Extra copy of entry summary.

    One extra copy of the entry summary covering wool or hair subject to 
duty at a rate per clean kilogram shall be filed in addition to the 
copies otherwise required.

[T.D. 93-52, 58 FR 37854, July 14, 1993]



Sec. 151.65  Duties.

    Duties on wool or hair subject to duty at a rate per clean kilogram 
may be estimated at the time of filing the entry summary on the basis of 
the clean yield shown on the entry summary if the port director is 
satisfied that the revenue will be properly protected. Liquidated duties 
shall be based

[[Page 196]]

upon the port director's final determination of clean yield. Estimated 
and liquidated duties on wool or hair tested for clean yield pursuant to 
the provisions of Sec. 151.71, and withdrawn for consumption without a 
change in condition which affects the duties and in a quantity less than 
an entire sampling unit shall be determined on the basis of an 
appropriate adjustment of the estimated percentage clean yield shown on 
the entry summary for the wool or hair included in each of the lots 
covered by the withdrawal. This adjustment shall be made by increasing 
or decreasing such estimated percentage clean yield of each lot by the 
difference between the percentage clean yield of the related sampling 
unit, as determined by the port director, and the weighted average 
percentage clean yield for the sampling unit, as computed from the 
estimated percentages clean yield and net weights shown on the entry 
summary for the lots included in the sampling unit.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979; T.D. 89-1, 53 FR 51269, Dec. 21, 1988]



Sec. 151.66  Duty on samples.

    Duty shall be assessed and collected on samples taken pursuant to 
any provision in this subpart, whether taken by the importer or by 
Customs, unless an exemption or remission is obtained by compliance with 
an applicable provision of the law or regulations. The duty shall be 
assessed upon the samples in accordance with their condition at the time 
of importation, except in the case of merchandise manipulated in 
warehouse pursuant to section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562). The collection of duty on the samples may be postponed 
when the importation concerned is not entered for consumption until the 
withdrawal of the merchandise from which the samples are taken, or until 
an application for the destruction or abandonment of such merchandise 
has been accepted pursuant to an appropriate provision of the law or 
regulations.



Sec. 151.67  Sampling by importer.

    The importer may be permitted after entry to draw samples under 
Customs supervision in reasonable quantities from the packages of wool 
or hair designated for examination, provided the bales or bags are 
properly repacked and repaired by him. Any samples so withdrawn shall be 
weighed and a record showing the quantities thereof shall be made and 
filed with the related entry.



Sec. 151.68  Merchandise to be sampled and tested by Customs.

    The following shall be weighed, sampled, and tested for clean yield, 
unless such sampling or testing is not feasible:
    (a) All importation of wool or hair subject to duty at a rate per 
clean kilogram, except importations entered directly for manipulation 
under the provisions of section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562), or for manufacture under the provisions of section 311, 
Tariff Act of 1930, as amended (19 U.S.C. 1311);
    (b) All imported wool or hair manipulated under the provisions of 
section 562, Tariff Act of 1930, as amended (19 U.S.C. 1562) and 
dutiable after manipulation as wool or hair at a rate per clean 
kilogram; and
    (c) Such other imported wool or hair as the port director may 
designate.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 151.69  Transfer or exportation of part of sampling unit.

    (a) Transfer of right to withdraw. When an original sampling unit 
has been weighed, sampled, and tested in accordance with this subpart 
and a part of such unit is covered by a transfer of the right to 
withdraw made pursuant to section 557, Tariff Act of 1930, as amended 
(19 U.S.C. 1557), the percentages clean yield of the part covered by the 
transfer and of the part not so covered shall be computed on the basis 
of the original Customs weights and test and the invoice data related to 
the respective parts.
    (b) Exportation. When part of such an original sampling unit is 
exported from continuous Customs custody without having been manipulated 
as provided for in section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562), the percentage clean yield of the part not exported shall 
be determined, at the discretion

[[Page 197]]

of the port director, either on the basis of a new determination by 
reweighing, resampling, and retesting, or by a computation as described 
in paragraph (a) of this section, for either the exported or the 
remaining part.



Sec. 151.70  Method of sampling by Customs.

    A general sample shall be taken from each sampling unit, unless it 
is not feasible to obtain a representative general sample of the wool or 
hair in a sampling unit or to test such a sample in accordance with the 
provisions of Sec. 151.71. At the request of the importer, two general 
samples may be taken from a sampling unit if the taking and testing of a 
second general sample is feasible. If two general samples are taken, one 
general sample shall be held for use in making a second test for clean 
yield if such a test is requested in accordance with the provisions of 
Sec. 151.71(c), or if a second test is found desirable by the port 
director or the chief chemist.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 93-52, 58 FR 
37854, July 14, 1993]



Sec. 151.71  Laboratory testing for clean yield.

    (a) Test and report by Customs laboratory. The clean yield of all 
general samples taken in accordance with Sec. 151.70 shall be 
determined by test in a Customs laboratory, unless it is found that it 
is not feasible to test such a sample and obtain a proper finding of 
percentage clean yield. A report of the percentage clean yield of each 
general sample as established by the test, or a statement of the reason 
for not testing a general sample, shall be forwarded to the port 
director.
    (b) Notification to importer. Where samples of wool or hair have 
been tested in a Customs laboratory and the port director has received a 
copy of the Laboratory Report, Customs Form 6415, the port director 
shall promptly provide notice of the test results by mailing a copy of 
that report to the importer.
    (c) Importer's request for retest. If the importer is dissatisfied 
with the port director's finding of clean yield, he may file with the 
port director a written request in duplicate for another laboratory test 
for percentage clean yield. Such request shall be filed within 14 
calendar days after the date of mailing of the notice of the port 
director's finding of clean yield. The request shall be granted if it 
appears to the port director to be made in good faith and if a second 
general sample as provided for in Sec. 151.70 is available for testing, 
or if all packages or, in the opinion of the Commissioner of Customs, an 
adequate number of the packages represented by the general sample are 
available and in their original imported condition.
    (d) Retest procedures. The second test shall be made upon the second 
general sample, if such a sample is available. If the second general 
sample is not available, the packages shall be reweighed, resampled, and 
tested in accordance with the provisions of this section. All costs and 
expenses of such operations, exclusive of the compensation of Customs 
officers, shall be borne by the importer, who may be present during such 
resampling and testing.
    (e) Request for commercial test. If the importer is dissatisfied 
with the results of the second laboratory test, or if a second 
laboratory test is not feasible, the wool or hair may be retested by a 
commercial laboratory in accordance with Sec. 151.73.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 75-121, 40 
FR 23458, May 30, 1975; T.D. 93-52, 58 FR 37854, July 14, 1993]



Sec. 151.73  Importer's request for commercial laboratory test.

    (a) Conditions for commercial test. If the importer is dissatisfied 
with the results of a retest made in accordance with Sec. 151.71(c), he 
may request that a commercial test be made to determine the percentage 
clean yield of the wool or hair.
    (b) Time for filing request. The importer's request shall be filed 
in writing with the port director within 14 calendar days after the date 
of mailing of the notice of the port director's findings based on the 
retest.
    (c) Procedures for commercial test. The port director shall cause a 
representative quantity of the wool or hair in dispute to be selected 
and tested by a commercial method approved by the

[[Page 198]]

Commissioner of Customs. The yield, as determined by such commercial 
test, shall be suitably adjusted to coincide with the definition of 
clean yield in Sec. 151.61(b). Such test shall be made under the 
supervision and direction of the port director at an establishment 
approved by him, and the expense thereof, including the actual expense 
of travel and subsistence of Customs officers but not their 
compensation, shall be paid by the importer.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 93-52, 58 FR 
37854, July 14, 1993]



Sec. 151.74  Retest at port director's request.

    If the port director is not satisfied with the results of any test 
provided for in Sec. 151.71 or Sec. 151.73, he may, within 14 calendar 
days after receiving the report of the results of such test, proceed to 
have another test made upon a suitable sample of the wool or hair at the 
expense of the Government. When the port director is proceeding to have 
another test made, he shall, within the 14-day period specified in this 
paragraph, notify the importer by mail of that fact.



Sec. 151.75  Final determination of clean yield.

    The port director shall base his final determination of clean yield 
upon a consideration of all the tests made in connection with the wool 
or hair concerned.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 93-52, 58 FR 
37854, July 14, 1993]



Sec. 151.76  Grading of wool.

    (a) Examination for grade. The port director shall cause wool 
dutiable at a rate per clean kilogram to be examined for grade. The 
standards for determining grades of wool shall be those which are 
established from time to time by the Secretary of Agriculture pursuant 
to law and which are in effect on the date of importation of the wool, 
as provided by Chapter 51, Additional U.S. Note 2, Harmonized Tariff 
Schedule of the United States (19 U.S.C. 1202).
    (b) Notification to importer. If classification of the wool at the 
grade or grades determined on the basis of the examination will result 
in the assessment of duty at a rate higher than the rate provided for 
wool of the grade stated in the entry, the port director shall promptly 
notify the importer by mail.
    (c) Importer's request for reexamination. If the importer is 
dissatisfied with the port director's findings as to the grade or grades 
of the wool, he may, within 14 calendar days after the date of mailing 
of the notice of the port director's findings, file in duplicate a 
written request for another determination of grade or grades, stating 
the reason for the request. Notice of the port director's findings on 
the basis of the reexamination of the wool shall be mailed to the 
importer.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



                            Subpart F_Cotton



Sec. 151.81  Definition of staple length.

    For the purposes of this subpart, ``staple length'' means the length 
of the fibers in a particular quantity of cotton designated in terms 
expressing the measurement by the millimeter or fraction thereof of a 
representative portion of the quantity in accordance with the Official 
Cotton Standards of the United States for length of staple, as 
established by the Secretary of Agriculture.

[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 151.82  Information on invoices.

    Invoices of cotton provided for in subheading 5201.00.10, 
5201.00.20, 5201.00.50, Harmonized Tariff Schedule of the United States 
(19 U.S.C. 1202), shall show the following detailed information in 
addition to other required information:
    (a) One of the following statements regarding each lot of cotton 
covered by the invoice:
    (1) This is harsh or rough cotton under 19.05 millimeters in staple 
length;

[[Page 199]]

    (2) The staple length of this cotton is under 28.58 millimeters. 
(This statement is not to be used if paragraph (a)(1) of this section is 
applicable);
    (3) The staple length of this cotton is 28.58 millimeters or more 
and under 34.93 millimeters;
    (4) This cotton is harsh or rough cotton (other than cotton of 
perished staple, and cotton pickings), white in color, and has a staple 
length of 29.37 millimeters or more and under 44.45 millimeters;
    (5) The staple length of this cotton is 34.93 millimeters or more 
and under 42.86 millimeters; or
    (6) The staple length of this cotton is 42.86 millimeters or more.
    (b) The name of the country of origin and, if practicable, the name 
of the province or other subdivision of the country of origin in which 
the cotton was grown.
    (c) The variety of the cotton, such as Karnak, Gisha, Pima, Tanguis, 
etc.

[T.D. 89-1, 53 FR 51269, Dec. 21, 1988]



Sec. 151.83  Method of sampling.

    For determining the staple length of any lot of cotton for any 
Customs purposes, samples of the lot shall be taken in accordance with 
commercial practice.



Sec. 151.84  Determination of staple length.

    The port director shall have one or more samples of each sampled 
bale of cotton stapled by a qualified Customs officer, or a qualified 
employee of the Department of Agriculture designated by the Commissioner 
of Customs for the purpose, and shall promptly mail the importer a 
notice of the results determined.



Sec. 151.85  Importer's request for redetermination.

    If the importer is dissatisfied with the port director's 
determination, he may file with the port director, within 14 calendar 
days after the mailing of the notice, a written request in duplicate for 
a redetermination of the staple length. Each such request shall include 
a statement of the claimed staple length for the cotton in question and 
a clear statement of the basis for the claim. The request shall be 
granted if it appears to the port director to be made in good faith. In 
making the redetermination of staple length, the port director may 
obtain an opinion of a board of cotton examiners from the U.S. 
Department of Agriculture, if he deems such action advisable. All 
expenses occasioned by any redetermination of staple length, exclusive 
of the compensation of Customs officers, shall be reimbursed to the 
Government by the importer.



                         Subpart G_Fruit Juices



Sec. 151.91  Brix values of unconcentrated natural fruit juices.

    The following values have been determined to be the average Brix 
values of unconcentrated natural fruit juices in the trade and commerce 
of the United States, for the purposes of the provisions of the 
Additional U.S. Notes to Chapter 20, Harmonized Tariff Schedule of the 
United States (HTSUS) (19 U.S.C. 1202), and will be used in determining 
the dutiable quantity of imports of concentrated fruit juices, using the 
procedure set forth in Additional U.S. Note 2, Chapter 20, HTSUS:

------------------------------------------------------------------------
                                                                Average
                     Kind of fruit juice                      Brix value
                                                               (degrees)
------------------------------------------------------------------------
Apple.......................................................        13.3
Apricot.....................................................        14.3
Bilberry (Whortleberry, Vaccinium Myrtillium)...............        13.4
Black currant...............................................        15.0
Blackberry..................................................        10.0
Black raspberry.............................................        11.1
Blueberry...................................................        14.1
Boysenberry.................................................        10.0
Carob.......................................................        40.0
Cherry......................................................        14.3
Crabapple...................................................        15.4
Cranberry...................................................        10.5
Date........................................................        18.5
Dewberry....................................................        10.0
Elderberry..................................................        11.0
Fig.........................................................        18.2
Gooseberry..................................................         8.3
Grape (Vitis Vinifera)......................................        21.5
Grape (Slipskin varieties)..................................        16.0
Grapefruit..................................................        10.2
Guava.......................................................         7.7
Lemon.......................................................         8.9
Lime........................................................        10.0
Loganberry..................................................        10.5
Mango.......................................................        17.0
Naranjilla..................................................        10.5
Orange......................................................        11.8
Papaya......................................................        10.2
Passion Fruit...............................................        15.3
Peach.......................................................        11.8
Pear........................................................        15.4
Pineapple...................................................        14.3
Plum........................................................        14.3

[[Page 200]]

 
Pomegranate.................................................        18.2
Prune.......................................................        18.5
Quince......................................................        13.3
Raisin......................................................        18.5
Raspberry (Red raspberry)...................................        10.5
Red currant.................................................        10.5
Soursop (Guanabana, Annono Muricata)........................        16.0
Strawberry..................................................         8.0
Tamarind....................................................        55.0
Tangerine...................................................        11.5
Youngberry..................................................        10.0
------------------------------------------------------------------------


[T.D. 73-175, 38 FR 17470, July 2, 1973, as amended by T.D. 74-41, 39 FR 
2470, Jan. 23, 1974; T.D. 84-173, 49 FR 31852, Aug. 9, 1984; T.D. 89-1, 
53 FR 51269, Dec. 21, 1988]

Subpart H [Reserved]



                Subpart I_Cigars, Cigarillos, and Tobacco



Sec. 151.111  Cigars, cigarillos, and tobacco of Cuban origin.

    The tobacco National Import Specialist at the port of New York shall 
have general supervision of the examination of (a) all cigars or 
cigarillos which may be made or derived in whole or in part of Cuban 
articles, and (b) all tobacco which may be of Cuban origin.

[T.D. 81-189, 46 FR 37888, July 23, 1981]



PART 152_CLASSIFICATION AND APPRAISEMENT OF MERCHANDISE--Table of Contents




Sec.
152.0 Scope.

                      Subpart A_General Provisions

152.1 Definitions.
152.2 Notification to importer of increased duties.
152.3 Merchandise found not to correspond with invoice description.

                        Subpart B_Classification

152.11 Harmonized Tariff Schedule of the United States.
152.12 Applicable rates of duty.
152.13 Commingling of merchandise.
152.16 Judicial changes in classification.
152.17 Changes in classification by Congress or by Presidential 
          proclamation.

                         Subpart C_Appraisement

152.20-152.22 [Reserved]
152.23 Merchandise imported from intermediate countries.
152.24 [Reserved]
152.25 Conversion of foreign currency.
152.26 Furnishing value information to importer.

Subpart D [Reserved]

                   Subpart E_Valuation of Merchandise

152.100 Interpretative notes.
152.101 Basis of appraisement.
152.102 Definitions.
152.103 Transaction value.
152.104 Transaction value of identical merchandise and similar 
          merchandise.
152.105 Deductive value.
152.106 Computed value.
152.107 Value if other values cannot be determined or used.
152.108 Unacceptable bases of appraisement.

    Authority: 19 U.S.C. 66, 1401a, 1500, 1502, 1624;
    Subpart B also issued under 19 U.S.C. 1315;
    Subpart C also issued under 19 U.S.C. 1503;
    Section 152.3 also issued under 19 U.S.C. 1499;
    Section 152.13 also issued under 19 U.S.C. 1202 (General Note 20, 
Harmonized Tariff Schedule of the United States (HTSUS)).

    Source: T.D. 73-175, 38 FR 17477, July 2, 1973, unless otherwise 
noted.



Sec. 152.0  Scope.

    This part contains regulations pertaining to the tariff 
classification and appraisement of imported merchandise. Other 
applicable provisions are contained elsewhere in this chapter, such as 
in part 10 for articles conditionally free or subject to a reduced rate 
of duty, and in part 159 for relief from duties on articles lost, 
damaged, etc.



                      Subpart A_General Provisions



Sec. 152.1  Definitions.

    The following are general definitions for the purposes of part 152:
    (a)-(b) [Reserved]
    (c) Date of exportation. ``Date of exportation,'' or the ``time of 
exportation'' referred to in section 402, Tariff Act of 1930, as amended 
(19 U.S.C. 1401a), means the actual date the merchandise finally leaves 
the country of exportation for the United States. If no positive 
evidence is at hand as to the actual date of exportation, the port 
director shall ascertain or estimate the date of exportation by all 
reasonable

[[Page 201]]

ways and means in his power, and in so doing may consider dates on bills 
of lading, invoices, and other information available to him.
    (d) Fair retail value. ``Fair retail value'' or ``fair market 
value'' as used in Section XXII, Harmonized Tariff Schedule of the 
United States, and part 148 of this chapter means the price actually 
paid or payable for all imported merchandise, or if not purchased, the 
value as otherwise ascertained under 19 CFR 152.100 et seq.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 87-89, 52 FR 
24446, July 1, 1987; T.D. 89-1, 53 FR 51269, Dec. 21, 1988]



Sec. 152.2  Notification to importer of increased duties.

    If the port director believes that the entered rate or value of any 
merchandise is too low, or if he finds that the quantity imported 
exceeds the entered quantity, and the estimated aggregate of the 
increase in duties on that entry exceeds $15, he shall promptly notify 
the importer on Customs Form 29, specifying the nature of the difference 
on the notice. Liquidation shall be made promptly and shall not be 
withheld for a period of more than 20 days from the date of mailing of 
such notice unless in the judgment of the port director there are 
compelling reasons that would warrant such action.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 82-224, 47 
FR 53728, Nov. 29, 1982; T.D. 93-66, 58 FR 44131, Aug. 19, 1993]



Sec. 152.3  Merchandise found not to correspond with invoice description.

    When any merchandise not corresponding with the description given in 
the invoice is found by the examining officer, duties shall be assessed 
on the merchandise actually found. If the discrepancy appears 
conclusively to be the result of a mistake and not of any intent to 
defraud, no proceedings for forfeiture shall be taken. When the entire 
shipment does not agree with the invoice and there is no evidence of any 
intent to defraud, a new entry shall be required and the estimated duty 
paid on the original entry shall be refunded on liquidation as in the 
case of a nonimportation. (Sec. 499, 46 Stat. 728, as amended; 19 U.S.C. 
1499)



                        Subpart B_Classification



Sec. 152.11  Harmonized Tariff Schedule of the United States.

    Merchandise shall be classified in accordance with the Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202) as interpreted by 
administrative and judicial rulings.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51269, Dec. 21, 1988]



Sec. 152.12  Applicable rates of duty.

    Rates of duty shall be based on the detailed instructions in Sec. 
141.69 of this chapter, which provides in general that the rates of duty 
applicable to merchandise shall be those in effect on the date of entry 
or withdrawal for consumption, except for certain merchandise covered by 
an entry for immediate transportation or overcarried and returned to the 
port of entry.



Sec. 152.13  Commingling of merchandise.

    (a) Notice to importer. The port director shall give written notice 
to the importer as promptly as possible after any commingling is 
discovered.
    (b) Highest rate applicable. Commingled merchandise shall be 
assessed with duty at the highest rate or rates applicable to any one 
kind of merchandise included in the commingling, unless:
    (1) The quantity and value of each of the kinds so included can be 
readily ascertained by the usual method of Customs examination or by one 
or more of the methods specified in General Note 20, Harmonized Tariff 
Schedule of the United States (HTSUS) (19 U.S.C. 1202), or
    (2) The conditions specified in General Note 20, HTSUS, are 
satisfied.
    (c) Time limit. To obtain the benefit of General Note 20, HTSUS, the 
importer shall, within 30 days after the date of mailing or personal 
delivery of the notice provided for in paragraph (a) of this section, 
take appropriate action as follows:
    (1) File with the port director evidence showing performance of the 
commercial settlement tests specified in General Note 20, HTSUS; or
    (2) Perform the segregation under Customs supervision as specified 
in General Note 20, HTSUS; or

[[Page 202]]

    (3) File with the port director documentary proof which will satisfy 
him that the merchandise is entitled to the lower rate of duty under 
General Note 20, HTSUS.
    (d) Extension of time limit. The 30-day limit for filing the 
evidence specified in General Note 20 or for performing the segregation 
specified in General Note 20, Harmonized Tariff Schedule of the United 
States, may be extended by the port director for additional periods of 
30 days each, but not beyond 6 months from the date of mailing or 
personal delivery of the notice provided for in paragraph (a) of this 
section, if the importer makes written application for each extension 
and gives satisfactory reasons for its allowance.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988; T.D. 95-29, 60 FR 18349, Apr. 11, 1995; T.D. 00-
81, 65 FR 68887, Nov. 15, 2000; T.D. 02-14, 67 FR 15099, Mar. 29, 2002]



Sec. 152.16  Judicial changes in classification.

    The following procedures apply to changes in classification made by 
decision of either the United States Court of International Trade or the 
United States Court of Appeals for the Federal Circuit, except to the 
extent otherwise provided in a ruling published in the Customs Bulletin 
pursuant to Sec. 177.10(a) of this chapter:
    (a) Identical merchandise under decision favorable to Government. 
The principles of any court decision favorable to the Government shall 
be applied to all merchandise identical with that passed on by the court 
which is covered by unliquidated entries, whether for consumption or 
warehouse.
    (b) Similar merchandise under decision favorable to Government. The 
principles of any court decision favorable to the Government shall be 
applied to merchandise, though not identical with the merchandise the 
subject of the court's decision, if its classification is affected by 
such principles, provided that it has been entered or withdrawn for 
consumption after 30 days from the date of publication of the court's 
decision in the Customs Bulletin.
    (c) Higher rate. If a court decision overruling a protest contains a 
definite statement that a higher rate than that assessed by the port 
director was properly chargeable, such higher rate shall be applied to 
all merchandise, whether identical or similar to that passed on by the 
court, which is affected by the principles of the court's decision and 
which is entered or withdrawn for consumption after 30 days from the 
date of the publication of the court's decision in the Customs Bulletin.
    (d) American manufacturer's petition upheld. If the court upholds a 
petition made by an American manufacturer, producer, or wholesaler under 
the provisions of section 516, Tariff Act of 1930, as amended (19 U.S.C. 
1516), the principles of the court's decision shall be applicable to all 
merchandise of that character which is entered or withdrawn for 
consumption after the date of publication of the court's decision in the 
Customs Bulletin. The liquidation of entries covering merchandise of 
that character made after publication of the court's decision shall be 
suspended in accordance with Sec. 159.57 of this chapter pending any 
rehearing or review, then liquidated, or, if necessary, reliquidated in 
accordance with the final judicial decision.
    (e) Other decisions adverse to Government. Unless the Commissioner 
of Customs otherwise directs, the principles of any court decision 
adverse to the Government (except for a decision upholding an American 
manufacturer's petition as covered in paragraph (d) of this section) 
shall be applied to unliquidated entries and protested entries which 
have not been denied in whole or in part and in which the same issue is 
involved as soon as the time within which an application for a rehearing 
or review may be filed has expired without such application having been 
made. See Sec. 176.31 of this chapter for the treatment of entries 
which are the subject of a court decision.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 75-186, 40 
FR 31928, July 30, 1975; T.D. 85-90, 50 FR 21430, May 24, 1985]



Sec. 152.17  Changes in classification by Congress or by Presidential 
Proclamation.

    When a rate of Customs duty or internal revenue tax imposed upon or 
by reason of importation is changed by an act of Congress or by a 
proclamation of

[[Page 203]]

the President, the new rate shall be applied in accordance with the 
detailed instructions in Sec. 141.69 of this chapter, which provides in 
general that the rates of duty applicable to merchandise shall be those 
in effect on the date of entry or withdrawal for consumption, except for 
certain merchandise covered by an entry for immediate transportation or 
overcarried and returned to the port of entry.



                         Subpart C_Appraisement



Sec. Sec. 152.20-152.22  [Reserved]



Sec. 152.23  Merchandise imported from intermediate countries.

    Merchandise imported from one country, being the growth, production, 
or manufacture of another country, shall for value purposes (see 
sections 402, Tariff Act of 1930, as amended; 19 U.S.C. 1401a) be 
treated as an exportation of the country from which it is immediately 
imported. However, if it appears by the invoice, bill of lading, or 
other evidence that the merchandise was destined for the United States 
at the time of original shipment, it shall be treated as an exportation 
of the country from which it was originally exported. The term 
``country'' is to be regarded for the purposes of this section as 
embracing all the possessions of a nation, however widely separated, 
which are subject to the same supreme executive and legislative 
authority and control.

[T.D. 73-175, 38 FR 17477, July 2, 1973, as amended by T.D. 87-89, 52 FR 
24446, July 1, 1987]



Sec. 152.24  [Reserved]



Sec. 152.25  Conversion of foreign currency.

    When foreign currency must be converted for purposes of 
appraisement, the instructions in subpart C of part 159 of this chapter 
shall be followed.



Sec. 152.26  Furnishing value information to importer.

    The port director shall furnish to importers the latest information 
as to values in his possession, subject to the following conditions:
    (a) Before appraisement. Value information shall be given before 
appraisement only in response to a specific oral or written request by 
the importer, supported by an adequate reason for the request, or where 
required by Customs purposes, such as in determining proper estimated 
duties to be deposited or notification of increased duties in accordance 
with Sec. 152.2.
    (b) Only for merchandise under port director's jurisdiction. The 
information shall be given only in regard to merchandise to be appraised 
by, or under the jurisdiction of, the port director who receives the 
request, and only with respect to merchandise for which there is 
presented evidence of a firm commitment or intent to import such 
merchandise into the United States.
    (c) Information by importer. Each request shall be accompanied by 
the latest information as to the values in question which the importer 
has or can reasonably obtain.
    (d) Information not binding. Value information shall be given by the 
port director only with an understanding and agreement in each case that 
the information is in no sense an appraisement and is not binding upon 
the port director's action when he appraises the merchandise.
    (e) No reply required after entry. The port director shall not be 
required to reply to a written request for value information after a 
value for the merchandise has been declared on entry unless he has 
information indicating a probable appraised value different from such 
entered value.

Subpart D [Reserved]



                   Subpart E_Valuation of Merchandise

    Source: T.D. 81-7, 46 FR 2600, Jan. 12, 1981, unless otherwise 
noted.



Sec. 152.100  Interpretative notes.

    The interpretative notes set forth in this subpart have been derived 
from information contained in the Statement of Administrative Action 
relating to customs valuation, submitted to and approved by Congress 
along with the Trade Agreements Act of 1979 (Pub. L.

[[Page 204]]

96-39), and will have the force and effect of regulations issued under 
this subpart.



Sec. 152.101  Basis of appraisement.

    (a) Effective date. The value for appraisement of merchandise 
exported to the United States on or after July 1, 1980, or, for articles 
classified under subheading 6401.10.00 Harmonized Tariff Schedule of the 
United States (19 U.S.C. 1202), on or after July 1, 1981, will be 
determined in accordance with section 402, Tariff Act of 1930 (19 U.S.C. 
1401a), as amended by section 201, Trade Agreements Act of 1979.
    (b) Methods. Imported merchandise will be appraised on the basis, 
and in the order, of the following:
    (1) The transaction value provided for in Sec. 152.103;
    (2) The transaction value of identical merchandise provided for in 
Sec. 152.104, if the transaction value cannot be determined, or can be 
determined but cannot be used because of the limitations provided for in 
Sec. 152.103(j);
    (3) The transaction value of similar merchandise provided for in 
Sec. 152.104, if the transaction value of identical merchandise cannot 
be determined;
    (4) The deductive value provided for in Sec. 152.105, if the 
transaction value of similar merchandise cannot be determined;
    (5) The computed value provided for in Sec. 152.106, if the 
deductive value cannot be determined; or
    (6) The value provided for in Sec. 152.107, if the computed value 
cannot be determined.
    (c) Importer's option. The importer may request the application of 
the computed value method before the deductive value method. The request 
must be made at the time the entry summary for the merchandise is filed 
with the port director (see Sec. 141.0a(b) of this chapter). If the 
importer makes the request, but the value of the imported merchandise 
cannot be determined using the computed value method, the merchandise 
will be appraised using the deductive value method if it is possible to 
do so. If the deductive value cannot be determined, the appraised value 
will be determined as provided for in Sec. 152.107.
    (d) Explanation to importer. Upon receipt of a written request from 
the importer within 90 days after liquidation, the port director shall 
provide a reasonable and concise written explanation of how the value of 
the imported merchandise was determined. The explanation will apply only 
to the imported merchandise being appraised and will not serve as 
authority with respect to the valuation of importations of any other 
merchandise at the same or a different port of entry. This procedure is 
for informational purposes only, and will not affect or replace the 
protest or administrative ruling procedures contained in parts 174 and 
177, respectively, of this chapter, or any other Customs procedures. 
Under this procedure, Customs will not be required to release any 
information not otherwise subject to disclosure under the Freedom of 
Information Act, as amended (5 U.S.C. 552), the Privacy Act of 1974 (5 
U.S.C. 552a), or any other statute (see part 103 of this chapter).

[T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988]



Sec. 152.102  Definitions.

    As used in this subpart, the following terms will have the meanings 
indicated:
    (a) Assist. (1) ``Assist'' means any of the following if supplied 
directly or indirectly, and free of charge or at reduced cost, by the 
buyer of imported merchandise for use in connection with the production 
or the sale for export to the United States of the merchandise:
    (i) Materials, components, parts, and similar items incorporated in 
the imported merchandise.
    (ii) Tools, dies, molds, and similar items used in the production of 
the imported merchandise.
    (iii) Merchandise consumed in the production of the imported 
merchandise.
    (iv) Engineering, development, artwork, design work, and plans and 
sketches that are undertaken elsewhere than in the United States and are 
necessary for the production of the imported merchandise.
    (2) No service or work to which paragraph (a)(1)(iv) of this section 
applies will be treated as an assist if the service or work:

[[Page 205]]

    (i) Is performed by an individual domiciled within the United 
States;
    (ii) Is performed by that individual while acting as an employee or 
agent of the buyer of the imported merchandise; and
    (iii) Is incidental to other engineering, development, artwork, 
design work, or plans or sketches that are undertaken within the United 
States.
    (3) The following apply in determining the value of assists 
described in paragraph (a)(1)(iv) of this section:
    (i) The value of an assist that is available in the public domain is 
the cost of obtaining copies of the assist.
    (ii) If the production of an assist occurred in the United States 
and one or more foreign countries, the value of the assist is the value 
added outside the United States.
    (iii) If the assist was purchased or leased by the buyer from an 
unrelated person, the value of the assist is the cost of the purchase or 
of the lease.
    (b) Commission. ``Selling commission'' means any commission paid to 
the seller's agent, who is related to or controlled by, or works for or 
on behalf of, the manufacturer or the seller.
    (c) Generally accepted accounting principles. (1) ``Generally 
accepted accounting principles'' refers to any generally recognized 
consensus or substantial authoritative support regarding:
    (i) Which economic resources and obligations should be recorded as 
assets and liabilities;
    (ii) Which changes in assets and liabilities should be recorded;
    (iii) How the assets and liabilities and changes in them should be 
measured;
    (iv) What information should be disclosed and how it should be 
disclosed; and
    (v) Which financial statements should be prepared.
    (2) The applicability of a particular set of generally accepted 
accounting principles will depend upon the basis on which the value of 
the imported merchandise is sought to be established, and the relevant 
country for the point in contention.
    (3) Information submitted by an importer, buyer, or producer in 
regard to the appraisement of merchandise may not be rejected by Customs 
because of the accounting method by which that information was prepared, 
if the preparation was in accordance with generally accepted accounting 
principles.
    (d) Identical merchandise. ``Identical merchandise'' means 
merchandise identical in all respects to, and produced in the same 
country and by the same person as, the merchandise being appraised. If 
identical merchandise cannot be found (or for purposes of related buyer 
and seller transactions (see Sec. 152.103 (j)(2)(i)(A)) regardless of 
whether identical merchandise can be found), merchandise identical in 
all respects to, and produced in the same country as, but not produced 
by the same person as, the merchandise being appraised, may be treated 
as ``identical merchandise''. ``Identical merchandise'' does not include 
merchandise that incorporates or reflects any engineering, development, 
artwork, design work, or plan or sketch supplied free or at reduced cost 
by the buyer of the merchandise for use in connection with the 
production or sale for export to the United States of the merchandise, 
and is not an assist because undertaken within the United States.
    (e) Packing costs. ``Packing costs'' means the cost of all 
containers (exclusive of instruments of international traffic) and 
coverings of whatever nature and of packing, whether for labor or 
materials, used in placing merchandise in condition, packed ready for 
shipment to the United States.
    (f) Price actually paid or payable. ``Price actually paid or 
payable'' means the total payment (whether direct or indirect, and 
exclusive of any charges, costs, or expenses incurred for 
transportation, insurance, and related services incident to the 
international shipment of the merchandise from the country of 
exportation to the place of importation in the United States) made, or 
to be made, for imported merchandise by the buyer to, or for the benefit 
of, the seller.
    (g) Related persons. ``Related persons'' means: (1) Members of the 
same family, including brothers and sisters (whether by whole or half 
blood), spouse, ancestors, and lineal descendants.
    (2) Any officer or director of an organization, and that 
organization.

[[Page 206]]

    (3) An officer or director of an organization and an officer or 
director of another organization, if each individual also is an officer 
or director in the other organization.
    (4) Partners.
    (5) Employer and employee.
    (6) Any person directly or indirectly owning, controlling, or 
holding with power to vote, five percent or more of the outstanding 
voting stock or shares of any organization, and that organization.
    (7) Two or more persons directly or indirectly controlling, 
controlled by, or under common control with, any person.
    (h) Same class or kind. ``Merchandise of the same class or kind'' 
means merchandise (including, but not limited to, identical merchandise 
and similar merchandise) within a group or range of merchandise produced 
by a particular industry or industry sector.
    (i) Similar merchandise. ``Similar merchandise'' means merchandise 
produced in the same country and by the same person as the merchandise 
being appraised, like the merchandise being appraised in characteristics 
and component material, and commercially interchangeable with the 
merchandise being appraised. If similar merchandise cannot be found (or 
for purposes of related buyer and seller transactions (see Sec. 152.103 
(j)(2)(i)(A)) regardless of whether similar merchandise can be found), 
merchandise produced in the same country as, but not produced by the 
same person as, the merchandise being appraised, like the merchandise 
being appraised in characteristics and component material, and 
commercially interchangeable with the merchandise being appraised, may 
be treated as ``similar merchandise''. ``Similar merchandise'' does not 
include merchandise that incorporates or reflects any engineering, 
development, artwork, design work, or plan or sketch supplied free or at 
reduced cost by the buyer of the merchandise for use in connection with 
the production or the sale for export to the United States of the 
merchandise, and is not an assist because undertaken within the United 
States.
    (j) Sufficient information. ``Sufficient information'' means 
information that establishes the accuracy of:
    (1) Any amount:
    (i) Added under Sec. 152.103(b) to the price actually paid or 
payable;
    (ii) Deducted under Sec. 152.105(d) as profit or general expenses 
or value from further processing, or
    (iii) Added under Sec. 152.106(b) as profit or general expenses; or
    (2) Any difference taken into account under Sec. 152.103(j)(2)(ii); 
or
    (3) Any adjustment made under Sec. 152.104(d).
    (k) Unit price in greatest aggregate quantity. ``Unit price at which 
merchandise is sold in the greatest aggregate quantity'' means the unit 
price at which the ``merchandise concerned'' is sold to unrelated 
persons at the first commercial level after importation (in cases to 
which Sec. 152.105(c)(1) and (2) apply), or after further processing 
(in cases to which Sec. 152.105(c)(3) applies), at which the sales take 
place in a total volume greater than the total volume sold at any other 
unit price and sufficient to establish the unit price.

[T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997]



Sec. 152.103  Transaction value.

    (a) Price actually paid or payable--(1) General. In determining 
transaction value, the price actually paid or payable will be considered 
without regard to its method of derivation. It may be the result of 
discounts, increases, or negotiations, or may be arrived at by the 
application of a formula, such as the price in effect on the date of 
export in the London Commodity Market. The word ``payable'' refers to a 
situation in which the price has been agreed upon, but actual payment 
has not been made at the time of importation. Payment may be made by 
letters of credit or negotiable instruments and may be made directly or 
indirectly.

    Example 1. In a transaction with foreign Company X, a U.S. firm pays 
Company X $10,000 for a shipment of meat products, packed ready for 
shipment to the United States. No selling commission, assist, royalty, 
or license fee is involved. Company X is not related to the U.S. 
purchaser and imposes no condition or limitation on the buyer.
    The customs value of the imported meat products is $10,000--the 
transaction value of the imported merchandise.

[[Page 207]]

    Example 2. A foreign shipper sold merchandise at $100 per unit to a 
U.S. importer. Subsequently, the foreign shipper increased its price to 
$110 per unit. The merchandise was exported after the effective date of 
the price increase. The invoice price of $100 was the price originally 
agreed upon and the price the U.S. importer actually paid for the 
merchandise.
    How should the merchandise be appraised?
    Actual transaction value of $100 per unit based on the price 
actually paid or payable.
    Example 3. A foreign shipper sells to U.S. wholesalers at one price 
and to U.S. retailers at a higher price. The shipment undergoing 
appraisement is a shipment to a U.S. retailer. There are continuing 
shipments of identical and similar merchandise to U.S. wholesalers.
    How should the merchandise be appraised?
    Actual transaction value based on the price actually paid or payable 
by the retailer.
    Example 4. Company X in the United States pay $2,000 to Y Toy 
Factory abroad for a shipment of toys. The $2,000 consists of $1,850 for 
the toys and $150 for ocean freight and insurance. Y Toy Factory would 
have charged Company X $2,200 for the toys; however, because Y owed 
Company X $350, Y charged only $1,850 for the toys. What is the 
transaction value?
    The transaction value of the imported merchandise is $2,200, that 
is, the sum of the $1,850 plus the $350 indirect payment. Because the 
transaction value excludes C.I.F. charges, the $150 ocean freight and 
insurance charge is excluded.
    Example 5. A seller offers merchandise at $100, less a 2% discount 
for cash. A buyer remits $98 cash, taking advantage of the cash 
discount.
    The transaction value is $98, the price actually paid or payable.

    (2) Indirect payment. An indirect payment would include the 
settlement by the buyer, in whole or in part, of a debt owed by the 
seller, or where the buyer receives a price reduction on a current 
importation as a means of settling a debt owed him by the seller. 
Activities such as advertising, undertaken by the buyer on his own 
account, other than those for which an adjustment is provided in Sec. 
152.103(b), will not be considered an indirect payment to the seller 
though they may benefit the seller. The costs of those activities will 
not be added to the price actually paid or payable in determining the 
customs value of the imported merchandise.
    (3) Assembled merchandise. The price actually paid or payable may 
represent an amount for the assembly of imported merchandise in which 
the seller has no interest other than as the assembler. The price 
actually paid or payable in that case will be calculated by the addition 
of the value of the components and required adjustments to form the 
basis for the transaction value.

    Example 1. The importer previously has supplied an unrelated foreign 
assembler with fabricated components ready for assembly having a value 
or cost at the assembler's plant of $1.00 per unit. The importer pays 
the assembler 50[cent] per unit for the assembly. The transaction value 
for the assembled unit is $1.50.
    Example 2. Same facts as Example 1 above except the U.S. importer 
furnishes to the foreign assembler a tooling assist consisting of a tool 
acquired by the importer at $1,000. The transportation expenses to the 
foreign assembler's plant for the tooling assist equal $100. The 
transaction value for the assembled unit would be $1.50 per unit plus a 
pro rata share of the tooling assist valued at $1,100.

    (4) Rebate. Any rebate of, or other decrease in, the price actually 
paid or payable made or otherwise effected between the buyer and seller 
after the date of importation of the merchandise will be disregarded in 
determining the transaction value under Sec. 152.103(b).
    (5) Foreign inland freight and other inland charges incident to the 
international shipment of merchandise--(i) Ex-factory sales. If the 
price actually paid or payable by the buyer to the seller for the 
imported merchandise does not include a charge for foreign inland 
freight and other charges for services incident to the international 
shipment of merchandise (an ex-factory price), those charges will not be 
added to the price.
    (ii) Sales other than ex-factory. As a general rule, in those 
situations where the price actually paid or payable for imported 
merchandise includes a charge for foreign inland freight, whether or not 
itemized separately on the invoices or other commercial documents, that 
charge will be part of the transaction value to the extent included in 
the price. However, charges for foreign inland freight and other 
services incident to the shipment of the merchandise to the United 
States may be considered incident to the international shipment of that 
merchandise within the meaning of

[[Page 208]]

Sec. 152.102(f) if they are identified separately and they occur after 
the merchandise has been sold for export to the United States and placed 
with a carrier for through shipment to the United States.
    (iii) Evidence of sale for export and placement for through 
shipment. A sale for export and placement for through shipment to the 
United States under paragraph (a)(5)(ii) of this section shall be 
established by means of a through bill of lading to be presented to the 
port director. Only in those situations where it clearly would be 
impossible to ship merchandise on a through bill of lading (e.g., 
shipments via the seller's own conveyance) will other documentation 
satisfactory to the port director showing a sale for export to the 
United States and placement for through shipment to the United States be 
accepted in lieu of a through bill of lading.
    (iv) Erroneous and false information. This regulation shall not be 
construed as prohibiting Customs from making appropriate additions to 
the dutiable value of merchandise in instances where verification 
reveals that foreign inland freight charges or other charges for 
services incident to the international shipment of merchandise have been 
overstated.
    (b) Additions to price actually paid or payable. (1) The transaction 
value of imported merchandise is the price actually paid or payable for 
the merchandise when sold for exportation to the United States, plus 
amounts equal to:
    (i) The packing costs incurred by the buyer with respect to the 
imported merchandise;
    (ii) Any selling commission incurred by the buyer with respect to 
the imported merchandise;
    (iii) The value, apportioned as appropriate, of any assist;
    (iv) Any royalty or license fee related to the imported merchandise 
that the buyer is required to pay, directly or indirectly, as a 
condition of the sale of the imported merchandise for exportation to the 
United States; and
    (v) The proceeds of any subsequent resale, disposal, or use of the 
imported merchandise that accrue, directly or indirectly, to the seller.
    (2) The price actually paid or payable for imported merchandise will 
be increased by the amounts attributable to the items (and no others) 
described in paragraphs (b)(1) (i) through (v) of this section to the 
extent that each amount is not otherwise included within the price 
actually paid or payable, and is based on sufficient information. If 
sufficient information is not available, for any reason, with respect to 
any amount referred to in this section, the transaction value will be 
treated as one that cannot be determined.
    (3) Interpretative note. A royalty is paid on the basis of the price 
in a sale in the United States of a gallon of a particular product 
imported by the pound and transformed into a solution after importation. 
If the royalty is based partially on the imported merchandise and 
partially on other factors which have nothing to do with the imported 
merchandise (such as if the imported merchandise is mixed with domestic 
ingredients and is no longer separately identifiable, or if the royalty 
cannot be distinguished from special financial arrangements between the 
buyer and the seller), it would be inappropriate to attempt to make an 
addition for the royalty. However, if the amount of this royalty is 
based only on the imported merchandise and can be readily quantified, an 
addition to the price actually paid or payable will be made.
    (c) Sufficiency of information. Additions to the price actually paid 
or payable will be made only if there is sufficient information to 
establish the accuracy of the additions and the extent to which they are 
not included in the price.
    (d) Assist. If the value of an assist is to be added to the price 
actually paid or payable, or to be used as a component of computed 
value, the port director shall determine the value of the assist and 
apportion that value to the price of the imported merchandise in the 
following manner:
    (1) If the assist consist of materials, components, parts, or 
similar items incorporated in the imported merchandise, or items 
consumed in the production of the imported merchandise, acquired by the 
buyer from an unrelated seller, the value of the assist is the

[[Page 209]]

cost of its acquisition. If the assist were produced by the buyer or a 
person related to the buyer, its value would be the cost of its 
production. In either case, the value of the assist would include 
transportation costs to the place of production.
    (2) If the assist consists of tools, dies, molds, or similar items 
used in the production of the imported merchandise, acquired by the 
buyer from an unrelated seller,the value of the assist is the cost of 
its acquisition. If the assist were produced by the buyer or a person 
related to the buyer, its value would be cost of its production. If the 
assist has been used previously by the buyer, regardless of whether it 
had been acquired or produced by him, the original cost of acquisition 
or production would be adjusted downward to reflect its use before its 
value could be determined. If the assist were leased by the buyer from 
an unrelated seller, the value of the assist would be the cost of the 
lease. In either case, the value of the assist would include 
transportation costs to the place of production. Repairs or 
modifications to an assist may increase its value.

    Example 1. A U.S. importer supplied detailed designs to the foreign 
producer. These designs were necessary to manufacture the merchandise. 
The U.S. importer bought the designs from an engineering company in the 
U.S. for submission to his foreign supplier.
    Should the appraised value of the merchandise include the value of 
the assist?
    No, design work undertaken in the U.S. may not be added to the price 
actually paid or payable.
    Example 2. A U.S. importer supplied molds free of charge to the 
foreign shipper. The molds were necessary to manufacture merchandise for 
the U.S. importer. The U.S. importer had some of the molds manufactured 
by a U.S. company and others manufactured in a third country.
    Should the appraised value of the merchandise include the value of 
the molds?
    Yes. It is an addition required to be made to transaction value.

    (e) Apportionment. (1) The apportionment of the value of assists to 
imported merchandise will be made in a reasonable manner appropriate to 
the circumstances and in accordance with generally accepted accounting 
principles. The method of apportionment actually accepted by Customs 
will depend upon the documentation submitted by the importer. If the 
entire anticipated production using the assist is for exportation to the 
United States, the total value may be apportioned over (i) the first 
shipment, if the importer wishes to pay duty on the entire value at 
once, (ii) the number of units produced up to the time of the first 
shipment, or (iii) the entire anticipated production. In addition to 
these three methods, the importer may request some other method of 
apportionment in accordance with generally accepted accounting 
principles. If the anticipated production is only partially for 
exportation to the United States, or if the assist is used in several 
countries, the method of apportionment will depend upon the 
documentation submitted by the importer.
    (2) Interpretative note. An importer provides the producer with a 
mold to be used in the production of the imported merchandise and 
contracts to buy 10,000 units. By the time of arrival of the first 
shipment of 1,000 units, the producer has already produced 4,000 units. 
The importer may request Customs to apportion the value of the mold over 
1,000, 4,000, 10,000 units, or any other figure which is in accordance 
with generally accepted accounting principles.
    (f) Royalties or license fees. Royalties or license fees for patents 
covering processes to manufacture the imported merchandise generally 
will be dutiable. Royalties or license fees paid to third parties for 
use, in the United States, of copyrights and trademarks related to the 
imported merchandise generally will be considered selling expenses of 
the buyer and not dutiable. The dutiable status of royalties or license 
fees paid by the buyer will be determined in each case and will depend 
on (1) whether the buyer was required to pay them as a condition of sale 
of the merchandise for exportation to the United States, and (2) to whom 
and under what circumstances they were paid. Payments made by the buyer 
to a third party for the right to distribute or resell the imported 
merchandise will not be added to the price actually paid or payable for 
the imported merchandise if the payments are not a condition of the sale 
of the merchandise for exportation to the United States.


[[Page 210]]


    Example A foreign producer sold merchandise to an unrelated U.S. 
importer. The U.S. importer pays a royalty to an unrelated third party 
for the right to manufacture and sell a product made in part from the 
imported merchandise. The royalty is based on the selling price of the 
further-manufactured product in the U.S.
    Is the license fee part of the appraised value? No. The license fee 
is not a condition of the sale of the imported merchandise for export to 
the U.S.

    (g) Proceeds of subsequent resale. Additions to the price actually 
paid or payable will be made for the value of any part of the proceeds 
of any subsequent resale, disposal, or use of the imported merchandise 
that accrues directly or indirectly to the seller. Dividends or other 
payments from the buyer to the seller which do not relate directly to 
the imported merchandise will not be added to the price actually paid or 
payable. Whether any addition would be made will depend on the facts of 
the particular case.

    Example A buyer contracts to import a new product. Not knowing 
whether the product ultimately will sell in the United States, the buyer 
agrees to pay the seller initially $1 per unit with an additional $1 per 
unit to be paid upon the sale of each unit in the United States. 
Assuming the resale price in the United States can be determined in a 
reasonable period of time, the transaction value of each unit would be 
$2. Otherwise, the transaction value could not be determined for want of 
sufficient information.

    (h) Right to reproduce. Charges for the right to reproduce the 
imported merchandise in the United States will not be added to the price 
actually paid or payable. The right to reproduce denotes that an idea or 
an original work is incorporated in, or reflected by, the imported 
merchandise, and the right is reserved to reproduce that idea or work in 
other merchandise by using the imported merchandise. The concept of the 
right to reproduce relates only to the following classes of merchandise: 
originals or copies of artistic or scientific works; originals or copies 
of models and industrial drawings; model machines and prototypes; and 
plant and animal species.

    Example The importer purchases a painting. By purchasing the 
painting, the owner possesses the right to resell, lease, or otherwise 
place it on display. Absent an agreement to the contrary, he does not 
possess the right to reproduce copies of the painting. Fees paid for the 
right to reproduce the painting would not be dutiable.

    (i) Exclusions from transaction value. The transaction value of 
imported merchandise does not include any of the following, if 
identified separately from the price actually paid or payable and from 
any cost or other item referred to in paragraph (b) of this section:
    (1) Any reasonable cost or charge that is incurred for--
    (i) The construction, erection, assembly, or maintenance of, or the 
technical assistance provided with respect to, the merchandise after its 
importation into the United States; or
    (ii) The transportation of the merchandise after its importation.
    (2) The customs duties and other Federal taxes currently payable on 
the imported merchandise by reason of its importation, and any Federal 
excise tax on, or measured by the value of, the merchandise for which 
vendors in the United States ordinarily are liable.

    Example A foreign shipper sells a piece of equipment to a U.S. 
buyer. The total contract price for the equipment includes technical 
assistance in the U.S. The equipment cannot be purchased without the 
technical assistance, but the contract provides a breakdown of costs.
    Should the appraised value include the technical assistance? No, 
transaction value does not include any reasonable costs for 
construction, erection, assembly, maintenance of, or technical 
assistance, for the imported merchandise after its importation into the 
U.S., the cost of which can be accurately identified as being separate 
from the price actually paid or payable for the merchandise to which 
they relate.

    (j) Limitations on use of transaction value--(1) In general. The 
transaction value of imported merchandise will be the appraised value 
only if:
    (i) There are no restrictions on the disposition or use of the 
imported merchandise by the buyer, other than restrictions which are 
imposed or required by law, limit the geographical area in which the 
merchandise may be resold, or do not affect substantially the value of 
the merchandise;

[[Page 211]]

    (ii) The sale of, or the price actually paid or payable for, the 
imported merchandise is not subject to any condition or consideration 
for which a value cannot be determined;
    (iii) No part of the proceeds of any subsequent resale, disposal, or 
use of the imported merchandise by the buyer will accrue directly or 
indirectly to the seller, unless an appropriate adjustment can be made 
under paragraph (b)(1)(v) of this section; and
    (iv) The buyer and seller are not related, or the buyer and seller 
are related but the transaction value is acceptable.
    (2) Related person transactions. (i) The transaction value between a 
related buyer and seller is acceptable if an examination of the 
circumstances of sale indicates that their relationship did not 
influence the price actually paid or payable, or if the transaction 
value of the imported merchandise closely approximates:
    (A) The transaction value of identical merchandise; or of similar 
merchandise, in sales to unrelated buyers in the United States; or
    (B) The deductive value or computed value of identical merchandise, 
or of similar merchandise; and
    (C) Each value referred to in paragraph (j)(2)(i) (A) and (B) of 
this section that is used for comparison relates to merchandise that was 
exported to the United States at or about the same time as the imported 
merchandise.
    (ii) In applying the values used for comparison, differences with 
respect to the sales involved will be taken into account if based on 
sufficient information supplied by the buyer or otherwise available to 
Customs and if the differences relate to:
    (A) Commercial levels;
    (B) Quantity levels;
    (C) The costs, commissions, values, fees, and proceeds described in 
paragraph (b) of this section; and
    (D) The costs incurred by the seller in sales in which the seller 
and the buyer are not related that are not incurred by the seller in 
sales in which the seller and the buyer are related.
    (k) Restrictions and conditions on sale. (1) A restriction placed on 
the buyer of imported merchandise that does not affect substantially its 
value will not prevent transaction value from being accepted as the 
appraised value.
    (i) Interpretative note. A seller requires a buyer of automobiles 
not to sell or exhibit them before a fixed date that represents the 
beginning of a model year.
    (2) The transaction value will not be accepted as the appraised 
value if the sale of, or the price actually paid or payable for, the 
merchandise is subject to a condition or consideration for which a value 
cannot be determined.
    (i) Interpretative note 1. The seller establishes the price of the 
imported merchandise on condition that the buyer also will buy other 
merchandise in specified quantities.
    (ii) Interpretative note 2. The price of the imported merchandise is 
dependent upon the price or prices at which the buyer of the merchandise 
sells other merchandise to the seller of the merchandise.
    (iii) Interpretative note 3. The price of the imported merchandise 
is established on the basis of a form of payment extraneous to the 
merchandise, such as where the merchandise is to be further processed by 
the buyer, and has been provided by the seller on condition that he will 
receive a specified quantity of the finished merchandise.
    (l) Related buyer and seller--(1) Validation of transaction. The 
port director shall not disregard a transaction value solely because the 
buyer and seller are related. There will be related person transactions 
in which validation of the transaction value, using the procedures 
contained in Sec. 152.103(j)(2), may not be necessary.
    (i) Interpretative note 1. Customs may have previously examined the 
relationship or may already have sufficient detailed information 
concerning the buyer and seller to be satisfied that the relationship 
did not influence the price actually paid or payable. In such case, if 
Customs has no doubts about the acceptability of the price, the price 
will be accepted without requesting further information from the 
importer. If Customs does have doubts about the acceptability of the 
price and is unable to accept the transaction value without further 
inquiry, the importer will be given an opportunity to supply such 
further detailed information as may be

[[Page 212]]

necessary to enable Customs to examine the circumstances of the sale. In 
this context, Customs will examine relevant aspects of the transaction, 
including the way in which the buyer and seller organize their 
commercial relations and the way in which the price in question was 
arrived at in order to determine whether the relationship influenced the 
price.
    (ii) Interpretative note 2. If it is shown that the buyer and 
seller, although related, buy from and sell to each other as if they 
were not related, this will demonstrate that the price has not been 
influenced by the relationship, and the transaction value will be 
accepted. If the price has been settled in a manner consistent with the 
normal pricing practices of the industry in question, or with the way 
the seller settles prices for sales to buyers who are not related to 
him, this will demonstrate that the price has not been influenced by the 
relationship.
    (iii) Interpretative note 3. If it is shown that the price is 
adequate to ensure recovery of all costs plus a profit which is 
equivalent to the firm's overall profit realized over a representative 
period of time (e.g., on an annual basis), in sales of merchandise of 
the same class or kind, this would demonstrate that the price has not 
been influenced.

    Example A foreign seller sells merchandise to a related U.S. 
importer. The foreign seller does not sell identical merchandise or 
similar merchandise to any unrelated parties. The transaction between 
the foreign seller and the U.S. importer is determined by Customs to be 
unaffected by the relationship.
    How should the merchandise be appraised?
    Transaction value based on the price actually paid or payable. A 
transaction value between a related buyer and seller is acceptable if 
the relationship did not affect the price actually paid or payable. This 
is so even if similar merchandise is being sold at a higher price, which 
includes a higher percentage for profit and general expenses.

    (2) Test values. (i) The importer or the buyer may demonstrate that 
the transaction value in a related person transaction is acceptable by 
showing that the value ``closely approximates'' any one of the test 
values provided in Sec. 152.103(j)(2)(i). The factors that will be 
examined to determine if the transaction value closely approximates a 
test value include:
    (A) The nature of the imported merchandise and the industry,
    (B) The season in which the merchandise is imported,
    (C) Whether the difference in value is commercially significant, and
    (D) Whether the difference in value is attributable to internal 
transport costs in the country of exportation.
    (ii) Because these factors may vary, Customs will not be able to 
apply a uniform standard, such as a fixed percentage, in each case. A 
small difference in value in a case involving one type of imported 
merchandise may be unacceptable, although a large difference in a case 
involving another type may be acceptable, in determining if the 
transaction value closely approximates any of the test values. Customs 
will be consistent in determining if one value ``closely approximates'' 
another value. The same approach will be taken if Customs considers a 
transaction value that is higher than any of the enumerated test values 
as will be taken if the transaction value is lower than any of the test 
values.

    Example In applying any of the test values, if the transaction value 
in the sale under consideration is rejected because 95 does not closely 
approximate 100, then a transaction value for the sale of the same 
merchandise at 105 occurring at or about the same time likewise would 
have to be rejected. Similarly, if 103 were considered to closely 
approximate 100, a transaction value of 97 likewise would closely 
approximate 100.

    (iii) If one of the test values provided in Sec. 152.103(j)(2)(i) 
has been found to be appropriate, the port director shall not seek to 
determine if the relationship between the buyer and seller influenced 
the price. If the port director already has sufficient information to be 
satisfied, without further detailed inquiries, that one of the test 
values is appropriate, he shall not require the importer to demonstrate 
that the test value is appropriate.
    (m) Rejection of transaction value. When Customs has grounds for 
rejecting the transaction value declared by an importer and that 
rejection increases the duty liability, the port director shall inform 
the importer of the grounds for the rejection. The importer will be 
afforded 20 days to respond in

[[Page 213]]

writing to the port director if in disagreement. This procedure will not 
affect or replace the administrative ruling procedures contained in part 
177 of this chapter, or any other Customs procedures.

[T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 84-235, 49 FR 
46888, Nov. 29, 1984]



Sec. 152.104  Transaction value of identical merchandise and similar 
merchandise.

    (a) General. The transaction value of identical merchandise, or of 
similar merchandise, is the transaction value (acceptable as the 
appraised value under Sec. 152.103 but adjusted under paragraph (e) of 
this section) of imported merchandise that is--
    (1) With respect to the merchandise being appraised, either 
identical merchandise, or similar merchandise; and
    (2) Exported to the United States at or about the time that the 
merchandise being appraised is exported to the United States.
    (b) Identical merchandise. Minor differences in appearance will not 
preclude otherwise conforming merchandise from being considered 
``identical''. See Sec. 152.102(d).
    (c) Similar merchandise. The quality of the merchandise, its 
reputation, and the existence of a trademark will be factors considered 
to determine whether merchandise is ``similar''. See Sec. 152.102(i).
    (d) Commercial level and quantity. Transaction values determined 
under this section will be based on sales of identical merchandise, or 
similar merchandise, at the same commercial level and in substantially 
the same quantity as the sales of the merchandise being appraised. If no 
such sale is found, sales of identical merchandise, or similar 
merchandise, at either a different commercial level or in different 
quantities, or both, will be used, but adjusted to take account of that 
difference. Any adjustment made under this section will be based on 
``sufficient information''. See Sec. 152.102(j). If in applying this 
section to any merchandise, two or more transaction values for identical 
merchandise, or for similar merchandise, are determined, the merchandise 
will be appraised on the basis of the lower or lowest of those values.
    (e) Adjustments. (1) Adjustments for identical merchandise, or 
similar merchandise, because of different commercial levels or 
quantities, or both, whether leading to an increase or decrease in the 
value, will be made only on the basis of sufficient information; e.g., 
valid price lists containing prices referring to different levels or 
quantities.
    (2) Interpretative note. If the imported merchandise being valued 
consists of a shipment of 10 units and the only identical imported 
merchandise for which a transaction value exists involved a sale of 500 
units, and it is recognized that the seller grants quantity discounts, 
the required adjustment may be accomplished by resorting to the seller's 
price list and using that price applicable to a sale of 10 units. This 
does not require that a sale had to have been made in quantities of 10 
as long as the price list has been established as being bona fide 
through sales at other quantities. In the absence of such an objective 
measure, however, the determination of a customs value under the 
provisions for transaction value of identical or similar merchandise is 
not appropriate.



Sec. 152.105  Deductive value.

    (a) Merchandise concerned. For the purposes of deductive value, 
``merchandise concerned'' means the merchandise being appraised, 
identical merchandise, or similar merchandise.
    (b) Merchandise of the same class or kind. For the purposes of 
deductive value, ``merchandise of the same class or kind'' includes 
merchandise imported from the same country as well as other countries as 
the merchandise being appraised.
    (c) Prices. The deductive value of the merchandise being appraised 
is whichever of the following prices (as adjusted under paragraph (d) of 
this section) is appropriate depending upon when and in what condition 
the merchandise concerned is sold in the United States:
    (1) If the merchandise concerned is sold in the condition as 
imported at or about the date of importation of the merchandise being 
appraised, the price is the unit price at which the merchandise 
concerned is sold in the greatest

[[Page 214]]

aggregate quantity at or about such date.
    (2) If the merchandise concerned is sold in the condition as 
imported but not sold at or about the date of importation of the 
merchandise being appraised, the price is the unit price at which the 
merchandise concerned is sold in the greatest aggregate quantity after 
the date of importation of the merchandise being appraised but before 
the close of the 90th day after the date of such importation.
    (3) If the merchandise concerned was not sold in the condition as 
imported and not sold before the close of the 90th day after the date of 
importation of the merchandise being appraised, the price is the unit 
price at which the merchandise being appraised, after further 
processing, is sold in the greatest aggregate quantity before the 180th 
day after the date of such importation. This provision will apply to 
appraisement of merchandise only if the importer so elects at the time 
of filing the entry summary.
    (d) Deductions from price. The price determined under paragraph (c) 
of this section will be reduced by an amount equal to:
    (1) Any commission usually paid or agreed to be paid, or the 
addition usually made for profit and general expenses, in connection 
with sales in the United States of imported merchandise that is of the 
same class or kind, regardless of the country of exportation, as the 
merchandise concerned;
    (2) The actual costs and associated costs of transportation and 
insurance incurred with respect to international shipments of the 
merchandise concerned from the country of exportation to the United 
States;
    (3) The usual costs and associated costs of transportation and 
insurance incurred with respect to shipments of the merchandise 
concerned from the place of importation to the place of delivery in the 
United States, if those costs are not included as a general expense 
under paragraph (d)(1) of this section;
    (4) The customs duties and other Federal taxes currently payable on 
the merchandise concerned by reason of its importation, and any Federal 
excise tax on, or measured by the value of, the merchandise for which 
vendors in the United States ordinarily are liable; and
    (5) But only in the case of price determined under paragraph (c)(3) 
of this section, the value added by the processing of the merchandise 
after importation to the extent that the value is based on sufficient 
information relating to the cost of that processing.
    (e) Profit and general expenses; special rules. (1) The deduction 
made for profit and general expenses (taken as a whole) will be based 
upon the importer's profit and general expenses, unless the profit and 
general expenses are inconsistent with those reflected in sales in the 
United States of imported merchandise of the same class or kind from all 
countries, in which case the deduction will be based on the usual profit 
and general expenses reflected in those sales, as determined from 
sufficient information. Any State or local tax imposed on the importer 
with respect to the sale of imported merchandise will be treated as a 
general expense.
    (2) In determining deductions for commissions and usual profit and 
general expenses, sales in the United States of the narrowest group or 
range of imported merchandise of the same class or kind, including the 
merchandise being appraised, for which sufficient information can be 
provided, will be examined.
    (f) Packing costs. The price determined under paragraph (c) of this 
section will be increased, but only to the extent that the costs are not 
otherwise included, by an amount equal to the packing costs incurred by 
the importer or the buyer with respect to the merchandise concerned.
    (g) Assists. For purposes of determining deductive value, any sale 
to a person who supplies any assist for use in connection with the 
production or sale for export of the merchandise concerned will be 
disregarded.
    (h) Unit price in greatest aggregate quantity. The unit price will 
be established after a sufficient number of units have been sold to an 
unrelated person. The unit price to be used when the units have been 
sold in different quantities will be that at which the total volume sold 
is greater than the

[[Page 215]]

total volume sold at any other unit price.
    (1) Interpretative note 1. Merchandise is sold to an unrelated 
person from a price list which grants favorable unit prices for 
purchases made in larger quantities:

------------------------------------------------------------------------
                                                                  Total
                                                                quantity
          Sale quantity             Unit     Number of sales     sold at
                                   price                          each
                                                                  price
------------------------------------------------------------------------
1-10 units......................     $100  10 sales of 5 units        65
                                  .......  5 sales of 3 units.
11-25 units.....................       95  5 sales of 11 units        55
Over 25 units...................       90  1 sale of 30 units.        80
                                  .......  1 sale of 50 units.  ........
------------------------------------------------------------------------


The greatest number of units sold at a price is 80; therefore, the unit 
price in the greatest aggregate quantity is $90.
    (2) Interpretative note 2. Two sales to unrelated persons occur: in 
the first sale, 500 units are sold at a price of $95 each; in the second 
sale, 400 units are sold at a price of $90 each. In this example, the 
greatest number of units sold at a particular price is 500; therefore, 
the unit price in the greatest aggregate quantity is $95.
    (3) Interpretative note 3. Various quantities are sold to unrelated 
persons at various prices:

                                (i) Sales
------------------------------------------------------------------------
                                                                  Unit
                        Sale quantity                            price
------------------------------------------------------------------------
40 units.....................................................       $100
30 units.....................................................         90
15 units.....................................................        100
50 units.....................................................         95
25 units.....................................................        105
35 units.....................................................         90
5 units......................................................        100
------------------------------------------------------------------------


                               (ii) Totals
------------------------------------------------------------------------
                                                                  Unit
                     Total quantity sold                         price
------------------------------------------------------------------------
65...........................................................        $90
50...........................................................         95
60...........................................................        100
25...........................................................        105
------------------------------------------------------------------------


In this example, the greatest number of units sold at a particular price 
is 65; therefore, the unit price in the greatest aggregate quantity is 
$90.
    (i) Further processing--(1) Quantified data. If merchandise has 
undergone further processing after its importation into the United 
States and the importer elects the method specified in paragraph (c)(3) 
of this section, deductions made for the value added by that processing 
will be based on objective and quantifiable data relating to the cost of 
the work performed. Accepted industry formulas, recipes, methods of 
construction, and other industry practices would form the basis for the 
deduction. That deduction also will reflect amounts for spoilage, waste, 
or scrap derived from the further processing.
    (2) Loss of identity. If the imported merchandise loses its identity 
as a result of further processing, the method specified in paragraph 
(c)(3) of this section will not be applicable unless the value added by 
the processing can be determined accurately without unreasonable 
difficulty for either importers or Customs. If the imported merchandise 
maintains its identity but forms a minor element of the merchandise sold 
in the United States, the use of paragraph (c)(3) of this section will 
be unjustified. The port director shall review each case involving these 
issues on its merits.

    Example A foreign shipper sells merchandise to a related U.S. 
importer. The foreign shipper does not sell to any unrelated person. The 
transaction between the foreign shipper and the U.S. importer is 
determined to have been affected by the relationship. There is no 
identical or similar merchandise from the same country of production. 
The U.S. importer further processes the product and sells the finished 
product to an unrelated buyer in the U.S. within 180 days of the date of 
importation. No assists from the unrelated U.S. buyer are involved, and 
the type of processing involved can be accurately costed.
    How should the merchandise be appraised?
    The merchandise should be appraised under deductive value with 
allowances for profit and general expenses, freight and insurance, 
duties and taxes, and the cost of processing.

[T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 85-123, 50 FR 
29956, July 23, 1985]



Sec. 152.106  Computed value.

    (a) Elements. The computed value of imported merchandise is the sum 
of:
    (1) The cost or value of the materials and the fabrication and other 
processing of any kind employed in the production of the imported 
merchandise;

[[Page 216]]

    (2) An amount for profit and general expenses equal to that usually 
reflected in sales of merchandise of the same class or kind as the 
imported merchandise that are made by the producers in the country of 
exportation for export to the United States;
    (3) Any assist, if its value is not included under paragraph (a) (1) 
or (2) of this section; and
    (4) The packing costs.
    (b) Special rules. (1) The cost or value of materials under 
paragraph (a)(1) of this section will not include the amount of any 
internal tax imposed by the country of exportation that is directly 
applicable to the materials or their disposition if the tax is remitted 
or refunded upon the exportation of the merchandise in the production of 
which the materials were used.
    (2) The amount for profit and general expenses under paragraph 
(a)(2) of this section will be based upon the producer's profit and 
general expenses, unless the producer's profit and general expenses are 
inconsistent with those usually reflected in sales of merchandise of the 
same class or kind as the imported merchandise that are made by 
producers in the country of exportation for export to the United States. 
In that case, the amount under paragraph (a)(2) of this section will be 
based on the usual profit and general expenses of such producers in 
those sales, as determined from ``sufficient information''. See Sec. 
152.102(j).
    (c) Profit and general expenses. The amount for profit and general 
expenses will be taken as a whole. If the producer's profit figure is 
low and general expenses high, those figures taken together nevertheless 
may be consistent with those usually reflected in sales of imported 
merchandise of the same class or kind.
    (1) Interpretative note 1. A product is introduced into the United 
States, and the producer accepts either no profit or a low profit to 
offset the high general expenses required to introduce the product into 
this market. If the producer can demonstrate that there is a low profit 
on sales of the imported merchandise because of peculiar commercial 
circumstances, the actual profit figures will be accepted provided the 
producer has valid commercial reasons to justify them and his pricing 
policy reflects the usual pricing policies in the industry.
    (2) Interpretative note 2. Producers have been forced to lower 
prices temporarily because of an unforseeable drop in demand, or they 
sell merchandise to complement a range of merchandise being produced in 
the United States and accept a low profit to maintain competitiveness. 
If the producer's own figures for profit and general expenses are not 
consistent with those usually reflected in sales of merchandise of the 
same class or kind as the merchandise being valued which are made in the 
country of exportation for export to the United States, the amount for 
profit and general expenses will be based upon reliable and quantifiable 
information other than that supplied by or on behalf of the producer of 
the merchandise.
    (d) Assists and packing costs. Computed value also will include an 
amount equal to the apportioned value of any assists used in the 
production of the imported merchandise and the packing costs for the 
imported merchandise. The value of any engineering, development, 
artwork, design work, and plans and sketches undertaken in the United 
States will be included in computed value only to the extent that their 
value has been charged to the producer. Depending on the producer's 
method of accounting, the value of assists may be included (duplicated) 
in the producer's cost of materials, fabrication, and other processing, 
or in the general expenses. If duplication occurs, a separate amount for 
the value of the assists will not be added to the other elements as it 
is not intended that any component of computed value be included twice.
    (e) Merchandise of same class or kind. Sales for export to the 
United States of the narrowest group or range of imported merchandise, 
including the merchandise being appraised, will be examined to determine 
usual profit and general expenses. For the purpose of computed value, 
merchandise of the same class or kind must be from the same country as 
the merchandise being appraised.

    Example A foreign shipper sells merchandise to a related U.S. 
importer. The foreign

[[Page 217]]

shipper does not sell to any unrelated persons. The transaction between 
the foreign shipper and the U.S. importer is determined to have been 
affected by the relationship. There is no identical or similar 
merchandise from the same country of production. The U.S. importer 
further processes the product and sells the finished product to an 
unrelated buyer in the U.S. within 180 days of the date of importation. 
No assists from the unrelated U.S. buyer are involved, and the type of 
processing involved can be accurately costed. The U.S. importer has 
requested that the shipment be appraised under computed value. The 
profit and general expenses figure for the same class or kind of 
merchandise in the country of exportation for export to the U.S. is 
known.
    How should the merchandise be appraised?
    The merchandise should be appraised under computed value, using the 
company's profit and general expenses if not inconsistent with those 
usually reflected in sales of merchandise of the same class or kind.

    (f) Availability of information. (1) It will be presumed that the 
computed value of the imported merchandise cannot be determined if:
    (i) The importer is unable to provide required computed value 
information within a reasonable time, and/or
    (ii) The foreign producer refuses to provide, or is legally 
prevented from providing, that information.
    (2) If information other than that supplied by or on behalf of the 
producer is used to determine computed value, the port director shall 
inform the importer, upon written request, of:
    (i) The source of the information,
    (ii) The data used, and
    (iii) The calculation based upon the specified data,

if not contrary to domestic law regarding disclosure of information. See 
also Sec. 152.101(d).



Sec. 152.107  Value if other values cannot be determined or used.

    (a) Reasonable adjustments. If the value of imported merchandise 
cannot be determined or otherwise used for the purposes of this subpart, 
the imported merchandise will be appraised on the basis of a value 
derived from the methods set forth in Sec. Sec. 152.103 through 
152.106, reasonably adjusted to the extent necessary to arrive at a 
value. Only information available in the United States will be used.
    (b) Identical merchandise or similar merchandise. The requirement 
that identical merchandise, or similar merchandise, should be exported 
at or about the same time of exportation as the merchandise being 
appraised may be interpreted flexibly. Identical merchandise, or similar 
merchandise, produced in any country other than the country of 
exportation or production of the merchandise being appraised may be the 
basis for customs valuation. Customs values of identical merchandise, or 
similar merchandise, already determined on the basis of deductive value 
or computed value may be used.
    (c) Deductive value. The ``90 days'' requirement for the sale of 
merchandise referred to in Sec. 152.105(c) may be administered 
flexibly.



Sec. 152.108  Unacceptable bases of appraisement.

    For the purposes of this subpart, imported merchandise may not be 
appraised on the basis of:
    (a) The selling price in the United States of merchandise produced 
in the United States;
    (b) A system that provides for the appraisement of imported 
merchandise at the higher of two alternative values;
    (c) The price of merchandise in the domestic market of the country 
of exportation;
    (d) A cost of production, other than a value determined under Sec. 
152.106 for merchandise that is identical merchandise, or similar 
merchandise, to the merchandise being appraised;
    (e) The price of merchandise for export to a country other than the 
United States;
    (f) Minimum values for appraisement;
    (g) Arbitrary or fictitious values.

[T.D. 81-7, 46 FR 2600, Jan. 12, 1981, as amended by T.D. 85-123, 50 FR 
29956, July 23, 1985]



PART 158_RELIEF FROM DUTIES ON MERCHANDISE LOST, DAMAGED, ABANDONED, 
OR EXPORTED--Table of Contents




Sec.
158.0 Scope.

[[Page 218]]

   Subpart A_Lost or Missing Packages and Deficiencies in Contents of 
                                Packages

158.1 Definition of ``permitted'' merchandise.
158.2 Shortages in packages released under immediate delivery or entry.
158.3 Allowance for lost or missing packages included in an entry 
          summary.
158.4 Liability of carrier for lost or missing packages.
158.5 Deficiencies in contents of packages--general.
158.6 Deficiencies in contents of examination packages.
158.7 Allowance for reduction or loss of merchandise by a natural force 
          or by leakage.

               Subpart B_Damaged or Defective Merchandise

158.11 Merchandise completely worthless at time of importation.
158.12 Merchandise partially damaged at time of importation.
158.13 Allowance for moisture and impurities.
158.14 Perishable merchandise condemned.

       Subpart C_Casualty, Loss, or Theft While in Customs Custody

158.21 Allowance in duties for casualty, loss, or theft while in Customs 
          custody.
158.21a Time period.
158.22 Not applicable when allowances made under other provisions.
158.23 Filing of application and evidence by importer.
158.24 Place of filing.
158.25 Partial destruction or injury.
158.26 Loss or theft in public stores.
158.27 Accidental fire or other casualty.
158.28 Waiver of evidence.
158.29 Decision by port director.
158.30 Review of port director's decision.

         Subpart D_Destroyed, Abandoned, or Exported Merchandise

158.41 Destruction of prohibited merchandise.
158.42 Abandonment by importer within 30 days after entry.
158.43 Abandonment or destruction of merchandise in bond.
158.44 Disposition of abandoned merchandise.
158.45 Exportation of merchandise.

    Authority: 19 U.S.C. 66, 1624, unless otherwise noted. Subpart C 
also issued under 19 U.S.C. 1563.

    Source: T.D. 72-258, 37 FR 20171, Sept. 27, 1972, unless otherwise 
noted.



Sec. 158.0  Scope.

    This part sets forth general rules for granting relief from duties 
on merchandise which is lost, damaged, abandoned, or exported.



   Subpart A_Lost or Missing Packages and Deficiencies in Contents of 
                                Packages



Sec. 158.1  Definition of ``permitted'' merchandise.

    For the purpose of this subpart, merchandise is ``permitted'' when 
Customs authorizes the carrier bringing the shipment to the port to make 
delivery to the consignee or the next carrier and:
    (a) These parties in interest, or their agents, make a joint 
determination of the quantities being delivered, or,
    (b) The carrier bringing the shipment to the port, at its option, 
independently declares the quantities available for delivery by filing 
with the port director, no later than the close of business on the next 
working day after a determination of quantities is made, a signed 
statement that:
    (1) An independent determination of quantities of merchandise 
available for delivery has been made, with the date of the determination 
shown;
    (2) At least 4 days have elapsed since the consignee or his agent 
was notified that Customs has authorized delivery; and,
    (3) The merchandise was and is available for delivery.



Sec. 158.2  Shortages in packages released under immediate delivery or 
entry.

    An importer may file an entry summary for consumption or an entry 
summary for warehouse for less than the invoiced and manifested number 
of packages in a shipment ``permitted'' and delivered to him or 
deposited in a bonded warehouse under the immediate delivery procedure 
in Sec. 142.21 of this chapter, or under the entry documentation in 
Sec. 142.3(a), if he files with the entry summary a Customs Form 5931 
in triplicate. The Customs Form 5931 shall be completed by the importer 
with attached copies of the dock receipt or other documents evidencing

[[Page 219]]

nonreceipt of the lost or missing packages.

[T.D. 85-159, 50 FR 38520, Sept. 23, 1985]



Sec. 158.3  Allowance for lost or missing packages included in an entry 
summary.

    Allowance shall be made in the assessment of duties for lost or 
missing packages of merchandise included in an entry summary whenever it 
is established to the satisfaction of the port director before the 
liquidation of the entry summary becomes final that the merchandise 
claimed to be lost or missing was not ``permitted.'' A claim for such 
allowance shall be made on Customs Form 5931, in triplicate, executed by 
the importer and the importing carrier or bonded carrier, as 
appropriate. When the importing or bonded carrier refuses to execute the 
Customs Form 5931, a claim may be allowed if the importer properly 
executes the Customs Form 5931 and attaches copies of the dock receipt 
or other document evidencing nonreceipt of the lost or missing packages.

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.4  Liability of carrier for lost or missing packages.

    Upon a joint determination or independent determination of quantity 
as set forth in Sec. 158.1 (a) or (b) resulting in the merchandise 
being ``permitted,'' the carrier shall be responsible only for any 
discrepancy between the manifested quantity and the ``permitted'' 
quantity. In the case of an importing carrier, when there is a 
difference between the quantity shown on the inward foreign manifest and 
the quantity ``permitted,'' liquidated damages or duties shall be 
assessed under the provisions of the carrier's bond or under the 
provisions of section 448, Tariff Act of 1930, as amended (19 U.S.C. 
1448), unless the carrier corrects his manifest (see Sec. 4.12 of this 
chapter). In the case of a bonded carrier, liquidated damages for lost 
or missing merchandise shall be assessed in accordance with Sec. 18.8 
of this chapter.



Sec. 158.5  Deficiencies in contents of packages--general.

    An allowance shall be made in the assessment of duties for 
deficiencies in the contents of packages when, before the liquidation of 
the entry becomes final, the importer files:
    (a) In the case of a concealed shortage, a Customs Form 5931, in 
triplicate, executed by the importer alone, and the port director 
satisfies himself as to the validity of the claim; or,
    (b) In the case of an unconcealed shortage, a Customs Form 5931, in 
triplicate, executed by both the importer and the importing or bonded 
carrier, as appropriate.



Sec. 158.6  Deficiencies in contents of examination packages.

    Allowance for deficiency in the contents of any examination package 
reported to the port director by a Customs officer shall be made in the 
liquidation of the entry. No Customs officer except one making an 
examination contemplated by section 499, Tariff Act of 1930, as amended 
(19 U.S.C. 1499), shall report a supposed deficiency to the port 
director unless it is established to the satisfaction of the reporting 
officer that the merchandise was not imported.

(Sec. 499, 46 Stat. 728, as amended; 19 U.S.C. 1499)



Sec. 158.7  Allowance for reduction or loss of merchandise by a natural 
force or by leakage.

    Merchandise subject to ad valorem, specific, or compound rates of 
duty found at the time of importation to be reduced or diminished by a 
natural force, such as evaporation, or by leakage, shall be appraised in 
its condition as imported, with an allowance made in the value, weight, 
quantity, or measure to the extent of the reduction or loss, except when 
forbidden by law or regulation.

(R.S. 251, as amended, sec. 499, sec. 624, 46 Stat. 728, as amended, 759 
(19 U.S.C. 66, 1499, 1624))

[T.D. 78-448, 43 FR 53713, Nov. 17, 1978]

[[Page 220]]



               Subpart B_Damaged or Defective Merchandise



Sec. 158.11  Merchandise completely worthless at time of importation.

    (a) Nonperishable merchandise. When a shipment of nonperishable 
merchandise, or any portion thereof which shall have been segregated 
from the remainder of the shipment under Customs supervision at the 
expense of the importer, is found by the port director to be entirely 
without commercial value at the time of importation by reason of damage 
or deterioration, an allowance in duties on such merchandise on the 
ground of nonimportation shall be made in the liquidation of the entry.
    (b) Perishable merchandise. In the case of perishable merchandise, 
an allowance in duties may be made under the following conditions:
    (1) An application for such allowance shall be filed with the port 
director on Customs Form 4315 in duplicate, within 96 hours after the 
unlading of the merchandise and before any of the shipment involved has 
been removed from the pier (or other area permitted under Sec. 
142.2(b)(2) of this chapter) pursuant to the entry permit.
    (2) Should an application filed in accordance with paragraph (b)(1) 
of this section be withdrawn, the merchandise involved shall thereafter 
be released upon presentation of an appropriate permit.
    (3) Allowance in duty shall be made in the liquidation of the entry 
on such of the merchandise covered by the application as is found by the 
port director to be entirely without commercial value by reason of 
damage or deterioration.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 76-220, 41 
FR 33248, Aug. 9, 1976]



Sec. 158.12  Merchandise partially damaged at time of importation.

    (a) Allowance in value. Merchandise which is subject to ad valorem 
or compound duties and found by the port director to be partially 
damaged at the time of importation shall be appraised in its condition 
as imported, with an allowance made in the value to the extent of the 
damage. However, no allowance shall be made when forbidden by law or 
regulation; for example, Chapter 72, Additional U.S. Note 3, Harmonized 
Tariff Schedule of the United States (19 U.S.C. 1202), provides that no 
allowance or reduction of duties for partial damage or loss in 
consequence of discoloration or rust occurring before importation shall 
be made upon iron or steel or upon any article of iron or steel.
    (b) No allowance in specific duties. In the case of merchandise 
subject to specific or compound duties and found to be partially damaged 
at the time of importation, no allowance may be made in the specific 
duties or in the weight, quantity, or measure (except that an allowance 
for any excessive moisture or other impurities may be made in accordance 
with Sec. 158.13). However, any part of the shipment which is totally 
worthless and can be segregated from the rest of the shipment may be 
treated as a nonimportation in accordance with Sec. 158.11.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)

[T.D. 72-258, 37 FR 20171, Sept 27, 1972, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988]



Sec. 158.13  Allowance for moisture and impurities.

    (a) Application by importer. (1) Petroleum and petroleum products. 
An application for an allowance in duties under section 507, Tariff Act 
of 1930, as amended (19 U.S.C. 1507), for all detectable moisture and 
impurities present in or upon imported petroleum or petroleum products 
shall be made by the importer on Customs Form 4315. The application 
shall be filed with the port director within 10 days of the port 
director's receipt of the gauging report or within 10 days of Customs 
acceptance of the entry's invoice gauge.
    (2) Other products. An application for an allowance in duties under 
19 U.S.C. 1507 for products other than petroleum or petroleum products 
for excessive moisture or other impurities not usually found in or upon 
such or similar merchandise shall be made by the importer on Customs 
Form 4315. The application shall be filed with the port director within 
10 days after the report

[[Page 221]]

of weight or gauge has been received by the port director or within 10 
days after the date upon which the entry or a related document was 
endorsed to show that invoice weight or gauge has been accepted by the 
Customs inspector or other Customs officer.
    (b) Allowance by port director. If the port director is satisfied 
after any necessary investigation that the merchandise contains moisture 
or impurities as described in paragraph (a) of this section, he shall 
make allowance for the amount thereof in the liquidation of the entry.

[T.D. 90-78, 55 FR 40167, Oct. 2, 1990]



Sec. 158.14  Perishable merchandise condemned.

    (a) Application by importer. When fruit or other perishable 
merchandise has been condemned by health officers or other legally 
constituted authorities within 10 days after landing, an importer who 
desires allowance in duties under section 506(2), Tariff Act of 1930, as 
amended (19 U.S.C. 1506(2)), shall within 5 days after such condemnation 
file with the port director written notice of the condemnation. The date 
of landing in the case of merchandise forwarded under an entry for 
immediate transportation is the date of arrival at the port of 
destination.
    (b) Allowance in duties. If the port director is satisfied after any 
necessary investigation that the claim is valid, allowance in duties 
shall be made in the liquidation of the entry. Such allowance shall be 
limited to perishable goods condemned by the health officers or 
authorities in the original package, unless segregation of the 
merchandise was under constant Customs supervision at the importer's 
expense.

(Sec. 506(2), 46 Stat. 732, as amended; 19 U.S.C. 1506(2))



       Subpart C_Casualty, Loss, or Theft While in Customs Custody



Sec. 158.21  Allowance in duties for casualty, loss, or theft while in 
Customs custody.

    Section 563(a), Tariff Act of 1930, as amended (19 U.S.C. 1563(a)), 
provides for allowance in duties upon satisfactory proof of the loss or 
theft of any merchandise while in the public stores, or of the actual 
injury or destruction, in whole or in part, of any merchandise by 
accidental fire or other casualty, while in bonded warehouse, or in the 
public stores, or while in transportation under bond, or while in 
Customs custody although not in bond, or while within the limits of any 
port of entry and before having been landed under Customs supervision. 
Such allowance is subject to the conditions set forth in this subpart.



Sec. 158.21a  Time period.

    An abatement or refund of duties shall be made in the case of injury 
to, or destruction of, merchandise in a bonded warehouse as a result of 
accidental fire or other casualty only if the fire or casualty occurs 
within 3 years from the date of importation.

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979]



Sec. 158.22  Not applicable when allowances made under other provisions.

    The procedures in this subpart do not apply in cases where 
allowances in duties are made under subpart A or subpart B of this part, 
or Sec. 18.6 of this chapter.



Sec. 158.23  Filing of application and evidence by importer.

    Within 30 days from the date of his discovery of the loss, theft, 
injury, or destruction, the importer shall file an application in 
duplicate on Customs Form 4315, and within 90 days from the date of 
discovery shall file any evidence required by Sec. 158.26 or Sec. 
158.27.



Sec. 158.24  Place of filing.

    The application and evidence shall be filed with the director of the 
port where the loss, theft, injury, or destruction occurred. In the case 
of total loss of merchandise by fire or other casualty while in 
transportation under bond, the application and evidence shall be filed 
with the director of the port at which the transportation entry was 
made. In the case of partial destruction of or injury to such 
merchandise, the application and evidence shall be filed with the 
director of the port of destination, except that if the merchandise is 
returned to the port at which the transportation entry was

[[Page 222]]

made, the application shall be filed at that port.



Sec. 158.25  Partial destruction or injury.

    In the case of partial destruction or injury, no application shall 
be entertained unless the port director shall have had an opportunity to 
examine the merchandise or the remainder thereof for the purpose of 
fixing the percentage of injury or destruction. Whether the duty 
involved is ad valorem, specific, or compound, the percentage of injury 
for the purpose of the allowance shall be determined by comparing the 
market value of comparable sound merchandise with the net salvage value 
of the injured merchandise computed on the basis of the market value of 
comparable injured merchandise, such comparison to be made as of the 
time and place of examination.



Sec. 158.26  Loss or theft in public stores.

    In the case of alleged loss or theft while the merchandise is in the 
public stores, there shall be filed a declaration of the importer, 
owner, or ultimate consignee that he did not receive the merchandise and 
that to the best of his knowledge and belief it was lost or stolen as 
alleged in the application. If the alleged loss or theft consisted of 
only a part of an examination package and was discovered after the 
release of the package from Customs custody, the following evidence 
shall be submitted:
    (a) A declaration of each cartman, lighterman, or other carrier 
handling the package between the public stores and the place of 
delivery, setting forth the condition of the package at the time of 
receipt and delivery by him and whether or not there was an abstraction 
of the merchandise while the package was in his possession.
    (b) A declaration of the person who first received the package for 
the importer, owner, or ultimate consignee as to whether or not he 
examined the package at the time of receipt, and, if so, as to its 
condition at that time.
    (c) A declaration of the person who opened the package after release 
from Customs custody that the alleged missing merchandise was not found 
by him in the package or elsewhere.



Sec. 158.27  Accidental fire or other casualty.

    In the case of injury or destruction by accidental fire or other 
casualty, the following evidence shall be submitted:
    (a) A declaration of the master of the vessel, the conductor or 
driver of the vehicle, the proprietor of the warehouse, or other person 
(except a Customs officer) having charge of the merchandise at the time 
of casualty, stating:
    (1) The time, place, and nature of such casualty;
    (2) That the merchandise was on board the vessel or vehicle, in the 
warehouse, or otherwise in his charge, as the case may be, at the time 
of the casualty; and
    (3) That it was totally destroyed and there is no probability of 
recovering or saving any part thereof, or that it was injured as the 
result of the casualty.
    (b) The bill of lading, the entry summary (where appropriate) and 
the invoice covering the merchandise, or certified copies of the 
foregoing, unless such documents are already in the possession of the 
director of the port where the claim is filed.
    (c) A copy of the insurance appraiser's report, if any.

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.28  Waiver of evidence.

    The port director may waive the production of any of the evidence 
required by this subpart if the validity of the claim is otherwise 
established to his satisfaction.



Sec. 158.29  Decision by port director.

    When the application and evidence have been received and examined by 
the port director, he shall determine whether the desired abatement or 
refund of duty shall be made and notify the importer of his decision.



Sec. 158.30  Review of port director's decision.

    (a) Filing of petition. The importer may file with the port director 
a petition addressed to the Commissioner of

[[Page 223]]

Customs for a review of the port director's decision. Such petition 
shall be filed in duplicate within 30 days from the date of the notice 
of the port director's decision, shall completely identify the case, and 
shall set forth in detail the objections to the port director's 
decision.
    (b) Decision by Commissioner. When the petition has been filed, the 
port director shall promptly transmit both copies thereof and the entire 
file to the Commissioner, together with a full statement of his views. 
When the Commissioner's decision is received, the port director shall 
proceed in conformity therewith.



         Subpart D_Destroyed, Abandoned, or Exported Merchandise



Sec. 158.41  Destruction of prohibited merchandise.

    Merchandise regularly entered or withdrawn for consumption in good 
faith and denied admission into the United States by any Government 
agency after its release from Customs custody, pursuant to a law or 
regulation in force on the date of entry or withdrawal for consumption, 
may be destroyed under Government supervision. In such case, the 
destroyed merchandise is exempt from duty and any duties collected 
thereon shall be refunded. In lieu of destruction, the merchandise may 
be exported under Customs supervision in accordance with Sec. 
158.45(c).

(Sec. 558(a), 46 Stat. 744, as amended; 19 U.S.C. 1558(a))



Sec. 158.42  Abandonment by importer within 30 days after entry.

    Allowance in duties for merchandise abandoned to the Government in 
accordance with section 506(1), Tariff Act of 1930, as amended (19 
U.S.C. 1506(1)), shall be subject to the following conditions:
    (a) Minimum quantity to be abandoned. The merchandise being 
abandoned shall represent 5 percent or more of the total value of all 
the merchandise of the same class or kind entered in the invoice in 
which the merchandise being abandoned appears.
    (b) Application within 30 days. The importer shall file written 
notice of abandonment with the director of the port where the entry was 
filed within 30 days after the date of entry, or, in the case of 
examination packages, within 30 days after release, whether or not 
delivery is taken by the importer immediately after entry or release as 
the case may be.
    (c) Delivery of merchandise. Within the 30-day period set forth in 
paragraph (b) of this section, the importer shall deliver the abandoned 
merchandise to such place as the port director specifies, unless the 
port director is satisfied that the merchandise is so far destroyed as 
to be nondeliverable.
    (d) Identification of merchandise. The importer shall identify the 
abandoned merchandise with that described in the invoice used in making 
entry to the satisfaction of the port director, who shall make such 
examination as may be necessary to verify such identification.
    (e) Segregation and repacking. When repacking is necessary to 
segregate the abandoned merchandise from the remainder of the shipment, 
such repacking shall be done at the expense of the importer and under 
Customs supervision.

(Sec. 506, 46 Stat. 732, as amended; 19 U.S.C. 1506)



Sec. 158.43  Abandonment or destruction of merchandise in bond.

    Allowance in duties for merchandise entered under bond destroyed 
under section 557(c), Tariff Act of 1930, as amended (19 U.S.C. 
1557(c)), or for merchandise in bonded warehouse abandoned to the 
Government under section 563(b), Tariff Act of 1930, as amended (19 
U.S.C. 1563(b)), shall be subject to the following conditions:
    (a) Application by importer. The importer shall file an application 
for abandonment or destruction of merchandise in bond with the port 
director on Customs From 3499, with the title modified to read 
``Application and Permit to Abandon (or Destroy) Goods in Bond.'' When 
an application is for permission to destroy, the proposed method of 
destruction shall be stated in the application and be subject to the 
approval of the port director.

[[Page 224]]

    (b) Concurrence of warehouse proprietor. An application to abandon 
or destroy warehoused merchandise shall not be approved unless concurred 
in by the warehouse proprietor.
    (c) Abandonment--(1) Costs. When in the opinion of the port director 
the abandonment of merchandise under section 563(b), Tariff Act of 1930, 
as amended (19 U.S.C. 1563(b)), will involve any expense or cost to the 
Government, or if the merchandise is worthless or unsalable, or cannot 
be sold for a sum sufficient to pay the expenses of sale, such 
abandonment shall not be permitted unless the importer deposits a sum 
which in the opinion of the port director will be sufficient to save the 
Government harmless from any expense or cost resulting from such 
abandonment. The sum so advanced shall be placed in a special deposit 
account and expended to cover the cost of destruction or to meet any 
deficit should the merchandise be sold and the proceeds of sale be less 
than the expenses of such sale. After meeting such expenses or deficit, 
any balance remaining shall be refunded to the importer. However, the 
applicant may elect to destroy such merchandise under Customs 
supervision pursuant to the provisions of section 557(c), Tariff Act of 
1930, as amended (19 U.S.C. 1557(c)).
    (2) Time period. The importer may abandon his warehoused merchandise 
voluntarily to the Government within 3 years from the date of 
importation.
    (d) Destruction--(1) Costs. Destruction of merchandise under section 
557(c), Tariff Act of 1930, as amended (19 U.S.C. 1557(c)), shall be at 
the expense of the importer.
    (2) Time period. The importer may request destruction of his 
warehoused merchandise within 5 years from the date of importation.
    (e) Action by port director. When the conditions set forth in 
paragraphs (a) through (d) of this section are met, the port director 
may grant applications and make an allowance in duties for the 
merchandise abandoned or destroyed. In any case where doubt exists, the 
matter shall be referred to the Commissioner of Customs.

(Secs. 557, 563, 46 Stat. 744, as amended, 746, as amended; 19 U.S.C. 
1557, 1563)

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979]



Sec. 158.44  Disposition of abandoned merchandise.

    (a) General conditions. The disposition of merchandise abandoned to 
the Government pursuant to Sec. 158.42 or Sec. 158.43, and not 
retained for official use, shall be governed by the regulations of the 
General Services Administration applicable to the United States Customs 
Service.
    (b) Sale of merchandise. If the merchandise is cleared for sale, it 
shall be sold in accordance with the applicable provisions of part 127 
of this chapter, unless it is worthless or it appears probable that the 
expenses of sale will exceed the proceeds. If the merchandise is sold, 
no part of the proceeds shall be returned to the importer.
    (c) Disposition of worthless merchandise. If the merchandise or any 
part thereof is worthless or it appears probable that the expenses of 
its sale will exceed the proceeds, it shall be destroyed or otherwise 
disposed of as the port director shall specify. The port director shall 
insure that such merchandise is destroyed or removed from the control of 
the importer to avoid the possibility of any part of the same 
merchandise being made the subject of another application.

(Secs. 506(1), 563(b), 46 Stat. 732, as amended, 746, as amended; 19 
U.S.C. 1506(1), 1563(b) R.S. 251, as amended, sec. 624, 46 Stat. 759 (19 
U.S.C. 66, 1624))

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 77-12, 41 
FR 56629, Dec. 29, 1976]



Sec. 158.45  Exportation of merchandise.

    (a) From continuous Customs custody. Merchandise in Customs custody 
for which entry has not been completed and merchandise which has 
remained in continuous Customs custody that is covered by a liquidated 
or unliquidated consumption entry may be exported under Customs 
supervision in accordance with Sec. Sec. 18.25 through 18.27 of this

[[Page 225]]

chapter, with refund of any duties that have been paid.
    (b) After release from Customs custody. Except as provided for in 
paragraphs (c) and (d) of this section, no refund or other allowance in 
duties shall be made because of the exportation of merchandise after its 
release from Customs custody unless a drawback of duties is expressly 
provided for by law (see part 191 of this chapter).
    (c) Prohibited merchandise. If merchandise has been regularly 
entered or withdrawn for consumption in good faith and is thereafter 
found to be prohibited entry under any law of the United States, it may 
be exported under Customs supervision in accordance with Sec. Sec. 
18.25 through 18.27 of this chapter, with refund of any duties that have 
been paid. In lieu of exportation, the merchandise may be destroyed in 
accordance with Sec. 158.41.
    (d) Not legally marked merchandise. When merchandise found to be not 
legally marked is exported or destroyed under Customs supervision after 
once having been released from Customs custody, as provided for in 
section 304(f), Tariff Act of 1930, as amended (19 U.S.C. 1304(f)), such 
exportation or destruction shall not exempt such merchandise from the 
payment of duties other than the marking duties.

(Sec. 558, 46 Stat. 744, as amended; 19 U.S.C. 1558; R.S. 251, as 
amended, sec. 624, 46 Stat. 759 (19 U.S.C. 66, 1624))

[T.D. 72-258, 37 FR 20171, Sept. 27, 1972, as amended by T.D. 83-212, 48 
FR 46771, Oct. 14, 1983; T.D. 90-51, 55 FR 28191, July 10, 1990]



PART 159_LIQUIDATION OF DUTIES--Table of Contents




Sec.
159.0 Scope.

                      Subpart A_General Provisions

159.1 Definition of liquidation.
159.2 Liquidation required.
159.3 Rounding of fractions.
159.4 Alcoholic beverages.
159.5 Cigars, cigarettes, and cigarette papers and tubes.
159.6 Difference between liquidated duties and estimated duties.
159.7 Rewarehouse entries.
159.8 Allowance for loss, injury, etc.
159.9 Notice of liquidation and date of liquidation for formal entries.
159.10 Notice of liquidation and date of liquidation for informal, mail 
          and baggage entries.
159.11 Entries liquidated by operation of law.
159.12 Extension of time for liquidation.

                   Subpart B_Weight, Gage, and Measure

159.21 Quantity upon which duties based.
159.22 Net weights and tares.

                Subpart C_Conversion of Foreign Currency

159.31 Rates to be used.
159.32 Date of exportation.
159.33 Proclaimed rate.
159.34 Certified quarterly rate.
159.35 Certified daily rate.
159.36 Multiple certified rates.
159.37 Suspension of certification of rates.
159.38 Rates for estimated duties.

                        Subpart D_Special Duties

159.41 Antidumping duties.
159.42 Discriminating duties.
159.43 Duties contingent upon foreign export duties, charges, or 
          restrictions.
159.44 Special duties on merchandise imported under agreements in 
          restraint of trade.
159.45 Additional duty for unauthentic claims of antiquity.
159.46 Marking duties.
159.47 Countervailing duties.

                   Subpart E_Suspension of Liquidation

159.51 General.
159.52 Warehouse entry not liquidated until final withdrawal.
159.53 Proof of duty-free or reduced-duty status.
159.54 Open bonds for production of documents.
159.55 Possible prohibited food, drugs, or other articles.
159.57 Merchandise affected by an American manufacturer's cause of 
          action sustained by the court.
159.58 Dumping and countervaling; action by port director.

             Subpart F_Continued Dumping and Subsidy Offset

159.61 General.
159.62 Notice of distribution.
159.63 Certifications.
159.64 Distribution of offset.

    Authority: 19 U.S.C. 66, 1500, 1504, 1624.
    Subpart C also issued under 31 U.S.C. 5151.
    Subpart F also issued under 19 U.S.C. 1675c.
    Sections 159.4, 159.5, and 159.21 also issued under 19 U.S.C. 1315;

[[Page 226]]

    Section 159.6 also issued under 19 U.S.C. 1321, 1505;
    Section 159.7 also issued under 19 U.S.C. 1557;
    Section 159.22 also issued under 19 U.S.C. 1507;
    Section 159.44 also issued under 15 U.S.C. 73, 74;
    Section 159.46 also issued under 19 U.S.C. 1304;
    Section 159.55 also issued under 19 U.S.C. 1558;
    Section 159.57 also issued under 19 U.S.C. 1516.

    Source: T.D. 73-175, 38 FR 17482, July 2, 1973, unless otherwise 
noted.



Sec. 159.0  Scope.

    This part sets forth general rules for the liquidation of entries. 
Certain specific procedures affecting liquidation appear in other parts 
of this chapter; e.g., part 158 of this chapter covers allowance for 
lost or damaged merchandise.



                      Subpart A_General Provisions



Sec. 159.1  Definition of liquidation.

    Liquidation means the final computation or ascertainment of the 
duties (not including vessel repair duties) or drawback accruing on an 
entry.

[T.D. 01-24, 66 FR 16400, Mar. 26, 2001]



Sec. 159.2  Liquidation required.

    All entries covering imported merchandise, except temporary 
importation bond entries and those for transportation in bond or for 
immediate exportation, shall be liquidated. Vessel repair entries are 
not subject to liquidation under this part (see Sec. 4.14(i)(3) of this 
chapter).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 01-24, 66 FR 
16400, Mar. 26, 2001]



Sec. 159.3  Rounding of fractions.

    (a) Value. In the computation of duty on entries, ad valorem rates 
shall be applied to the values in even dollars, fractional parts of a 
dollar less than 50 cents being disregarded and 50 cents or more being 
considered as $1, with all merchandise in the same invoice subject to 
the same rate of duty to be treated as a unit. However, the total 
dutiable value of the invoice shall not be increased or decreased by 
more than the rounding of the total dutiable value to an even dollar. 
When necessary, fractional parts of a dollar, whether more or less than 
50 cents, shall be dropped or taken up as whole dollars in order to 
avoid such an increase or decrease. If in such cases it is necessary to 
drop fractional parts of a dollar amounting to 50 cents or more, the 
lower fractions shall be dropped, and if it is necessary to take up as 
whole dollars fractional parts less than 50 cents, the larger fractions 
shall be taken. In the case of two equal fractions, the one subject to 
the lower rate of duty shall be dropped or taken up, as the case may be. 
In determining a rate of duty dependent upon value, fractional parts of 
a dollar shall be considered.
    (b) Quantities subject to specific duty. Except in the case of 
alcoholic beverages treated under Sec. 159.4, if a rate of duty is 
specific and $1 or less per unit, fractional quantities, if less than 
one-half, shall be disregarded, and if one-half or more shall be treated 
as a whole unit. Subject to the same exception, if a specific rate is 
more than $1 per unit, duty shall be assessed upon the exact quantity 
with any fractional part expressed in the form of a decimal extended to 
two places.



Sec. 159.4  Alcoholic beverages.

    (a) Quantities subject to duties. Customs duties and internal 
revenue taxes on alcoholic beverages provided for in headings 2207 and 
2208, Harmonized Tariff Schedule of the United States (HTSUS), (19 
U.S.C. 1202), and subject to internal revenue taxes shall be collected 
only on the number of proof gallons and fractional parts thereof, 
entered or withdrawn for consumption. No internal revenue tax shall be 
collected on distilled spirits in bulk which have been transferred to 
Internal Revenue bonded premises in accordance with Sec. 141.102(b) of 
this chapter. Customs duties and internal revenue taxes on alcoholic 
beverages other than subheadings 2206.00.30 and 2206.00.90, HTSUS, and 
distilled spirits provided for in headings 2207 and 2208, shall be 
collected only on the number of wine gallons and fractional parts 
thereof, entered or withdrawn for consumption.

[[Page 227]]

    (b) Computation of duties. In the computation of Customs duties on 
alcoholic beverages provided for in headings 2207 and 2208 (19 U.S.C. 
1202), which are also subject to internal revenue taxes, the methods 
prescribed for the computation of internal revenue taxes on such 
beverages shall be followed. The following methods apply to the specific 
beverages shown:
    (1) Distilled spirits. The quantity of distilled spirits imported in 
barrels, kegs, or similar containers shall be ascertained in accordance 
with the regulations of the Bureau of Alcohol, Tobacco and Firearms. 
Where distilled spirits are imported in bottles, jugs, or similar 
containers, Customs duties and taxes shall be collected on the exact 
quantity contained in each case or other outer container, fractional 
parts of a gallon being carried out to three decimal places utilizing 
the proof gallon method of computation.
    (2) Wine. Customs duties and taxes on wines shall be on the basis of 
a wine gallon of liquid measure equivalent to 231 cubic inches and shall 
be paid proportionally on all fractional parts of a wine gallon. 
Fractions of less than one-tenth gallon shall be converted to the 
nearest one-tenth gallon, and five-hundredths gallon shall be converted 
to the next full one-tenth gallon.
    (3) Beer and similar fermented beverages. Customs duties and taxes 
on beer, ale, porter, stout, and other similar fermented beverages, 
including sake, of any name or description containing one-half of 1 
percent or more of alcohol by volume, brewed or produced from malt, 
wholly or in part, or from any substitute therefor, shall be collected 
in accordance with section 5051(a), Internal Revenue Code of 1954 (26 
U.S.C. 5051(a)).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978; T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 
89-1, 53 FR 51270, Dec. 21, 1988]



Sec. 159.5  Cigars, cigarettes, and cigarette papers and tubes.

    The internal revenue taxes imposed on cigars, cigarettes, and 
cigarette papers and tubes under section 5701 or 7652, Internal Revenue 
Code of 1954 (26 U.S.C. 5701 or 7652), are determined in accordance with 
section 5703 of that Code (26 U.S.C. 5703) at the time of removal; that 
is, on the quantity removed from Customs custody under the entry or 
withdrawal for consumption. The Customs duties, unlike those on 
alcoholic beverages, do not necessarily apply only to such quantities.



Sec. 159.6  Difference between liquidated duties and estimated duties.

    (a) Difference under $20 in original liquidation. When there is a 
net difference of less than $20 between the total amount of duties, 
fees, taxes, and interest assessed in the liquidation of any entry 
(other than an informal, mail, or baggage entry) and the total amount of 
estimated duties, fees, and taxes deposited, including any supplemental 
deposit, the difference shall be disregarded and the entry endorsed ``as 
entered.'' In the case of an informal, mail, or baggage entry, the 
amount of duties, fees, and taxes computed by a Customs officer when the 
entry is prepared by, or filed with, him shall be considered the 
liquidated assessment.
    (b) Difference under $20 in reliquidation. When there is a net 
difference of less than $20 between the total amount of duties, fees, 
taxes, and interest found due in the reliquidation of any entry and the 
total amount of duties, fees, taxes, and interest assessed in the prior 
liquidation of the entry, the difference shall be disregarded except in 
the following cases:
    (1) Reliquidation at importer's request. When reliquidation of any 
entry is made at the importer's request, such as reliquidation following 
the allowance of a protest under section 514, Tariff Act of 1930, as 
amended (19 U.S.C. 1514), or a request for correction under section 
520(c), Tariff Act of 1930, as amended (19 U.S.C. 1520(c)), any refund 
determined to be due shall be refunded even if less than $20.
    (2) Court decision. Any refund or increase determined to be due as 
the result of the reliquidation of an entry in accordance with a court 
decision and judgment order shall be refunded or collected as the case 
may be.
    (c) Difference of $20 or more collected or refunded. If there is a 
difference of $20 or more between the duties, fees, taxes, and interest 
assessed in the liquidation

[[Page 228]]

of an entry and the total estimated duties, fees, and taxes deposited, 
or between the total duties, fees, taxes, and interest assessed in the 
reliquidation of an entry and those assessed in the prior liquidation, 
the entry shall be endorsed to show the difference and bills or refund 
checks shall be issued.
    (d) Customs duties and fees and internal revenue taxes and interest 
netted for $20 limit. The assessments of Customs duties and fees and 
internal revenue taxes and interest shall be separately stated on the 
entry at the time of liquidation, but the amounts of any differences 
shall be netted when applying the $20 minimum for issuance of a bill or 
refund check.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49791, Oct. 25, 1978; T.D. 94-51, 59 FR 30296, June 13, 1994; 64 FR 
56440, Oct. 20, 1999]



Sec. 159.7  Rewarehouse entries.

    The liquidation of the original warehouse entry shall be followed in 
determining the liability for duties on a rewarehouse entry, except in 
the following cases:
    (a) Merchandise excluded from liquidation of original warehouse 
entry. When any of the following types of merchandise are withdrawn from 
warehouse for transportation to another port, they shall be excluded 
from the liquidation of the original warehouse entry, and the liability 
for duties shall be determined by a liquidation of the rewarehouse entry 
made at the port where the merchandise is withdrawn for consumption or 
for exportation:
    (1) Alcoholic beverages provided for in headings 2203 through 2208, 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 
1202), and subject to internal revenue taxes;
    (2) Cigars, cigarettes, and cigarette papers and tubes subject to 
internal revenue taxes;
    (3) Tariff-rate quota merchandise; and
    (4) Wool or hair subject to duty at a rate per clean kilogram under 
Chapter 51, HTSUS.
    (b) Reliquidation required by change in rate. When a rate of Customs 
duty or tax is changed by an act of Congress or a proclamation of the 
President, any necessary reliquidation of Customs duty or tax on 
merchandise covered by a rewarehouse entry which may be required by 
reason of the change in rate shall be made at the port where the 
merchandise is held in Customs custody on the effective date of the 
change.
    (c) Shortage, irregular delivery, nondelivery, and other cases. In 
cases involving shortage, irregular delivery, or nondelivery under the 
original warehouse withdrawal for transportation, or in other cases when 
the port director of the port where the merchandise is entered for 
rewarehouse is of the opinion that circumstances make it inadvisable to 
follow the liquidation of the original warehouse entry, he shall make an 
appropriate adjustment in the amount of duties to be assessed under the 
rewarehouse entry.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988; T.D. 90-78, 55 FR 40168, Oct. 2, 1990]



Sec. 159.8  Allowance for loss, injury, etc.

    Allowance in duties for any merchandise which is lost, stolen, 
destroyed, injured, abandoned, or short-shipped shall be made in 
accordance with the provisions of part 158 of this chapter.



Sec. 159.9  Notice of liquidation and date of liquidation for formal 
entries.

    (a) Bulletin notice of liquidation. Notice of liquidation of formal 
entries shall be made on a bulletin notice of liquidation, Customs Form 
4333.
    (b) Posting of bulletin notice. The bulletin notice of liquidation 
shall be posted for the information of importers in a conspicuous place 
in the customhouse at the port of entry (or Customs station, when the 
entries listed were filed at a Customs station outside the limits of a 
port of entry), or shall be lodged at some other suitable place in the 
customhouse in such a manner that it can readily be located and 
consulted by all interested persons, who shall be directed to that place 
by a notice maintained in a conspicuous place in the customhouse stating 
where notices of liquidation of entries are to be found.
    (c) Date of liquidation--(1) Generally. The bulletin notice of 
liquidation shall be dated with the date it is posted or

[[Page 229]]

lodged in the customhouse for the information of importers. This posting 
or lodging shall be deemed the legal evidence of liquidation. For 
electronic entry summaries, the date of liquidation will be the date of 
posting of the bulletin notice of liquidation. Customs will endeavor to 
provide the filer with electronic notification of this date as an 
informal, courtesy notice of liquidation.
    (2) Exception: Entries liquidated by operation of law. (i) Entries 
liquidated by operation of law at the expiration of the time limitations 
prescribed in section 504. Tariff Act of 1930, as amended (19 U.S.C. 
1504), and set out in Sec. Sec. 159.11 and 159.12, shall be deemed 
liquidated as of the date of expiration of the appropriate statutory 
period.
    (ii) The bulletin notice of liquidation shall be posted or lodged in 
the customhouse within a reasonable period after each liquidation by 
operation of law and shall be dated as of the date of expiration of the 
statutory period.
    (iii) A protest under section 514, Tariff Act of 1930, as amended 
(19 U.S.C. 1514), and part 174 of this chapter shall be filed within 90 
days from the date the bulletin notice of liquidation of an entry by 
operation of law is posted or lodged in the customhouse.
    (d) Courtesy notice of liquidation. Customs will endeavor to provide 
importers or their agents with Customs Form 4333-A, ``Courtesy Notice,'' 
for all entries scheduled to be liquidated or deemed liquidated by 
operation of law. This notice shall serve as an informal, courtesy 
notice and not as a direct, formal and decisive notice of liquidation.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979; T.D. 90-1, 54 FR 52933, Dec. 26, 1989; T.D. 90-
92, 55 FR 49888, Dec. 3, 1990]



Sec. 159.10  Notice of liquidation and date of liquidation for informal, 
mail, and baggage entries.

    (a) Usual date of liquidation. Except in the cases provided for in 
paragraph (b) of this section, the effective date of liquidation for 
informal, mail, and baggage entries shall be:
    (1) The date of payment by the importer of duties due on the entry;
    (2) The date of release by Customs or the postmaster when the 
merchandise is released under such an entry free of duty; and
    (3) The date a free entry is accepted for articles released under a 
special permit for immediate delivery under part 142 of this chapter.
    (b) Date of liquidation when duty cannot be determined at time of 
entry. When the proper rate or amount of duty cannot be determined at 
the time of entry because the merchandise is subject to a tariff-rate 
quota, because of a missing document which, if for free entry, is not 
produced prior to the release of the merchandise to the importer, or 
because of any other reason, the printed notice of liquidation appearing 
on the receipt issued for any money collected on the entry shall be 
voided. When the tariff status of the merchandise either as dutiable or 
free is finally ascertained it shall be noted on the entry. The 
effective date of liquidation shall be the date of posting or lodging of 
the notice of liquidation required by paragraph (c)(3) of this section.
    (c) Notice of liquidation--(1) Dutiable entries. Where duties are 
paid on an entry in accordance with paragraph (a)(1) of this section, 
notice of liquidation is furnished by a suitable printed statement 
appearing on the receipt issued for duties collected. No other notice of 
liquidation shall be given, but notice of reliquidation of any such 
entry shall be given on Customs Form 4333 posted or lodged in the place 
and manner specified in Sec. 159.9(b).
    (2) Free entries. Notice of liquidation is furnished by release of 
the merchandise under a free entry in accordance with paragraph (a)(2) 
of this section, or by acceptance of the free entry in accordance with 
paragraph (a)(3) of this section after release under a special permit 
for immediate delivery. No further notice of the liquidation of such 
entries shall be given.
    (3) Entries where duty cannot be determined at time of entry. When 
the proper rate or amount of duty cannot be determined at the time of 
entry as set forth in paragraph (b) of this section, notice of 
liquidation shall be given on

[[Page 230]]

a bulletin notice of liquidation, Customs Form 4333, in the manner 
specified in Sec. 159.9 for formal entries.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989]



Sec. 159.11  Entries liquidated by operation of law.

    (a) Time limit generally. Except as provided in Sec. 159.12, an 
entry not liquidated within 1 year from the date of entry of the 
merchandise, or the date of final withdrawal of all merchandise covered 
by a warehouse entry, shall be deemed liquidated by operation of law at 
the rate of duty, value, quantity, and amount of duties asserted by the 
importer at the time of filing an entry summary for consumption in 
proper form, with estimated duties attached, or a withdrawal for 
consumption in proper form, with estimated duties attached. Notice of 
liquidation shall be given on the bulletin notice of liquidation, 
Customs Form 4333, as provided in Sec. Sec. 159.9 and 159.10(c)(3). 
Customs will endeavor to provide a courtesy notice of liquidation on 
Customs Form 4333-A in accordance with Sec. 159.9(d).
    (b) Applicability. The provisions of this section and Sec. 159.12 
shall apply to entries of merchandise for consumption or withdrawals of 
merchandise for consumption made on or after April 1, 1979, but shall 
not apply to drawback entries.

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989; T.D. 01-24, 66 FR 16400, Mar. 26, 2001]



Sec. 159.12  Extension of time for liquidation.

    (a) Reasons--(1) Extension. The port director may extend the 1-year 
statutory period for liquidation for an additional period not to exceed 
1 year if:
    (i) Information needed by Customs. Information needed by Customs for 
the proper appraisement or classification of the merchandise is not 
available, or
    (ii) Importer's request. The importer requests an extension in 
writing before the statutory period expires and shows good cause why the 
extension should be granted. ``Good cause'' is demonstrated when the 
importer satisfies the port director that more time is needed to present 
to Customs information which will affect the pending action, or there is 
a similar question under review by Customs.
    (2) Suspension. The 1-year liquidation period may be suspended as 
required by statute or court order.
    (b) Notice of extension. If the port director extends the time for 
liquidation, as provided in paragraph (a)(1) of this section, he 
promptly shall notify the importer or the consignee and his agent and 
surety on Customs Form 4333-A, appropriately modified, that the time has 
been extended and the reasons for doing so.
    (c) Notice of suspension. If the liquidation of an entry is 
suspended as required by statute or court order, as provided in 
paragraph (a)(2) of this section, the port director promptly shall 
notify the importer or the consignee and his agent and surety on Customs 
Form 4333-A, appropriately modified, of the suspension.
    (d) Additional extensions--(1) Information needed by Customs. If an 
extension has been granted because Customs needs more information and 
the port director thereafter determines that more time is needed, he may 
extend the time for liquidation for an additional period not to exceed 1 
year provided he issues the notice required by paragraph (b) of this 
section before termination of the prior extension period.
    (2) At importer's request. If the statutory period has been extended 
for 1 year at the importer's request, and the importer thereafter 
determines that additional time is necessary, he may request another 
extension in writing before the original extension expires, giving 
reasons for his request. If the port director finds that good cause (as 
defined in paragraph (a)(1)(ii) of this section) exists, he shall issue 
a notice extending the time for liquidation for an additional period not 
to exceed 1 year.
    (e) Limitation on extensions. The total time for which extensions 
may be granted by the port director may not exceed 3 years.
    (f) Time limitation--(1) Generally. An entry not liquidated within 4 
years from either the date of entry, or the date of final withdrawal of 
all the merchandise covered by a warehouse entry,

[[Page 231]]

shall be deemed liquidated by operation of law at the rate of duty, 
value, quantity, and amount of duty asserted by the importer at the time 
of filing the entry summary for consumption in proper form, with 
estimated duties attached, or the withdrawal for consumption in proper 
form, with estimated duties attached, unless liquidation continues to be 
suspended by statute or court order. Customs will endeavor to provide a 
courtesy notice of liquidation on Customs Form 4333-A, in accordance 
with Sec. 159.9(d), in addition to the bulletin notice specified in 
Sec. 159.9(c)(2)(ii).
    (2) Suspension of liquidation by statute or court order. When 
liquidation of an entry continues to be suspended beyond the 4-year 
period specified in paragraph (f)(1) of this section due to a statute or 
court order, the entry shall be liquidated within 90 days after removal 
of the suspension.
    (g) Notice of liquidation. If an entry is liquidated after an 
extension expires or a suspension is removed, notice of liquidation 
shall be given on the bulletin notice of liquidation, Customs Form 4333, 
as provided in Sec. Sec. 159.9 and 159.10(c)(3). Customs will endeavor 
to provide a courtesy notice of liquidation on Customs Form 4333-A in 
accordance with Sec. 159.9(d).

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989]



                   Subpart B_Weight, Gage, and Measure



Sec. 159.21  Quantity upon which duties based.

    Insofar as duties are based upon the quantity of any merchandise, 
such duties shall be based upon the quantity of such merchandise at the 
time of its importation, except in the following cases:
    (a) Manipulation in warehouse. If any merchandise covered by a 
warehouse entry has been cleaned, sorted, repacked, or otherwise changed 
in condition under section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562), withdrawals shall be passed and the entry liquidated on 
the basis of the weight, gauge, or measure of such merchandise in its 
manipulated condition with an appropriate notation in the duty statement 
that the duties are assessed on the basis of the manipulated condition 
of the merchandise.
    (b) Alcoholic beverages. Duties on certain alcoholic beverages are 
assessed only on the quantities entered or withdrawn for consumption 
(see Sec. 159.4).
    (c) Cigars, cigarettes, and cigarette papers and tubes. Although 
Customs duties on cigars, cigarettes, and cigarette papers and tubes are 
assessed on the quantities imported, the internal revenue taxes on such 
merchandise are assessed only on the quantities entered or withdrawn for 
consumption (see Sec. 159.5).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 80-142, 45 
FR 36386, May 30, 1980]



Sec. 159.22  Net weights and tares.

    (a) Determination of net weight. The net weight of merchandise 
dutiable by net weight, or upon a value dependent upon net weight, shall 
be determined insofar as possible by obtaining the actual weight, or by 
deducting the actual or schedule tare from the gross weight. Actual tare 
may be determined on the basis of tests when the tares of the packages 
in a shipment are reasonably uniform.
    (b) Invoice net weight or tare. When the actual net weight or tare 
cannot reasonably be determined and no schedule tare is applicable, 
liquidation may be made on the basis of the invoice net weight or tare.
    (c) Schedule tare. The following tares, which, from experience, have 
proved to be the average for certain classes of merchandise shall be 
known as schedule tares and shall be applied, except as provided in 
paragraph (d) of this section:

    Apple boxes. 2.984 kilograms per box. This schedule tare includes 
the paper wrappers, if any, on the apples.
    China clay in so-called half-ton casks: 26.856 kilograms per cask.
    Figs in skeleton cases: Actual tare for outer containers plus 13 
percent of the gross weight of the inside wooden boxes and figs.
    Fresh tomatoes: 113 grams per 100 paper wrappings.
    Lemons and oranges: 283 grams per box and 142 grams per half box for 
paper wrappings, and actual tare for outer containers.
    Ocher, dry, in casks: Eight percent of the gross weight.

[[Page 232]]

    Ocher, in oil, in casks: Twelve percent of the gross weight.
    Pimientos in tins imported from Spain: The following schedule 
drained weight shall be used as the Customs dutiable weight in the 
liquidation of entries, the difference between the weight of the new 
contents of pimientos in tins and such drained weight being the 
allowance made in liquidation for tare for water:

------------------------------------------------------------------------
                Size can                          Drained weight
------------------------------------------------------------------------
3 kilo.................................  13.6 kilograms-case of 6 tins.
794 grams..............................  16.7 kilograms-case of 24 tins.
425 grams..............................  8.0 kilograms-case of 24 tins.
198 grams..............................  3.9 kilograms-case of 24 tins.
113 grams..............................  2.4 kilograms-case of 24 tins.
------------------------------------------------------------------------

    Tobacco, leaf not stemmed: 5.9 kilograms per bale: Sumatra: actual 
tare for outside coverings, plus 1.9 kilograms for the inside matting 
and, if a certificate is attached to the invoice certifying that the 
bales contain paper wrapping and specifying whether light or heavy paper 
has been used, either 113 grams or 227 grams for the paper wrapping 
according to the thickness of paper used.

    (d) Actual tare. In the following circumstances, the actual tare 
shall be ascertained and in so doing the weigher shall empty and weigh 
as many casks, boxes, and other coverings as he may deem necessary:
    (1) If the importer is not satisfied with the invoice tare or with 
the schedule tare;
    (2) If the port director is of the opinion that the invoice or 
schedule tare does not correctly represent the tare of the merchandise; 
or
    (3) If the weigher has reason to believe that the invoice or 
schedule tare is greater than the real tare.
    (e) Estimated tare. When it is impracticable to ascertain the actual 
tare, the weigher shall state in his report what, in his judgment, 
constitutes a fair tare allowance.
    (f) Weight for value purposes. In determining the total dutiable 
value of merchandise which is subject to ad valorem duty and appraised 
on the basis of weight, liquidation shall be made on the same basis as 
appraisement. For example, if appraisement is made on the basis of gross 
weight, the unit value shall be multiplied by the total gross weight in 
computing the total value even though net weight may be used for other 
purposes in liquidation, such as in determining total specific duties.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988]



                Subpart C_Conversion of Foreign Currency



Sec. 159.31  Rates to be used.

    Except as otherwise specified in this subpart, no rate or rates of 
exchange shall be used to convert foreign currency for Customs purposes 
other than a proclaimed rate or certified rate or rates.



Sec. 159.32  Date of exportation.

    The date of exportation for currency conversion shall be fixed in 
accordance with Sec. 152.1(c) of this chapter.



Sec. 159.33  Proclaimed rate.

    If a rate of exchange has been proclaimed by the Secretary of the 
Treasury in accordance with 31 U.S.C. 5151(b) for the currency involved, 
such proclaimed rate shall be used unless it varies by 5 percent or more 
from the certified daily rate for the date of exportation as set forth 
in Sec. 159.35. In determining the percentage of variation between the 
proclaimed rate and the certified rate, the difference between the two 
rates shall be divided by the certified rate.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997]



Sec. 159.34  Certified quarterly rate.

    (a) Countries for which quarterly rate is certified. For the 
currency of each of the following foreign countries, there will be 
published in the Customs Bulletin, for the quarter beginning January 1, 
and for each quarter thereafter, the rate or rates first certified by 
the Federal Reserve Bank of New York for such foreign currency for a day 
in that quarter:

Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, 
Germany, Hong Kong, India, Iran, Ireland, Italy, Japan, Malaysia, 
Mexico, Netherlands, New Zealand, Norway, People's Republic of China, 
Philippines, Portugal, Republic of South

[[Page 233]]

Africa, Singapore, Spain, Sri Lanka (Ceylon), Sweden, Switzerland, 
Thailand, United Kingdom, Venezuela.

    (b) When certified quarterly rate is used. The certified quarterly 
rate established under paragraph (a) of this section shall be used for 
Customs purposes for any date of exportation within the quarter, except 
in the following cases:
    (1) Proclaimed rate. If a rate has been proclaimed by the Secretary 
of the Treasury under Sec. 159.33 which does not vary by 5 percent or 
more from the appropriate certified daily rate, notice of such variance 
shall be published in the Customs Bulletin and the proclaimed rate shall 
be used for Customs purposes in connection with merchandise exported on 
such date.
    (2) Certified daily rate. If the certified daily rate for the date 
of exportation varies by 5 percent or more from the certified quarterly 
rate, notice of such variation and the rate or rates certified for such 
day shall be published in the Customs Bulletin, and such certified daily 
rate shall be used for Customs purposes in connection with merchandise 
exported on such day.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 81-117, 46 
FR 24944, May 4, 1981]



Sec. 159.35  Certified daily rate.

    The daily buying rate of foreign currency which is determined by the 
Federal Reserve Bank of New York and certified to the Secretary of the 
Treasury in accordance with 31 U.S.C. 5151(e) shall be used for the 
conversion of foreign currency whenever a proclaimed rate or certified 
quarterly rate is not applicable under the provisions of Sec. Sec. 
159.33 and 159.34. If the date of exportation is one on which banks are 
generally closed in New York City, then the certified daily rate for the 
last preceding business day shall be considered the certified daily rate 
for the day of exportation.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997]



Sec. 159.36  Multiple certified rates.

    The following procedures shall apply when the Federal Reserve Bank 
of New York certifies two or more rates of exchange (e.g., official and 
free) for a foreign currency:
    (a) Rates to be published. When the Federal Reserve Bank of New York 
certifies two or more rates of exchange for the currency of any country, 
those rates will be published in the Customs Bulletin.
    (b) Laws of country of exportation followed. When multiple rates 
have been certified for a foreign currency, the rate to be used for 
Customs purposes shall be the type of certified rate which the port 
director is satisfied, from information in his own files, information 
obtained and presented to him by the importer, or information obtained 
from other sources, is uniformly applicable under the laws and 
regulations of the country of exportation to the particular class of 
merchandise on the date of exportation. In cases where two or more types 
of certified rates are uniformly applicable on a percentage bases, each 
type of certified rate shall be used for the percentage of value to 
which it is applicable. The percentages used shall be those which 
reflect realistically the percentage for which each type of rate is 
uniformly applicable under the laws and regulations of the country of 
exportation on the date of exportation.
    (c) Procedure when multiple certified rates not uniformly 
applicable. If the port director has credible information that a type of 
rate or combination of types of rates which would otherwise be 
applicable under paragraph (b) of this section were not required or 
permitted, as the case may be, under the laws and regulations of the 
country of exportation to be used uniformly during any period in 
connection with the payment for all merchandise of the class involved, 
he shall immediately submit a detailed report to the Commissioner of 
Customs, and shall suspend appraisement and liquidation as to all 
merchandise of the class involved exported to the United States during 
the period involved, until instructions are received from the 
Commissioner of Customs.
    (d) Rate for merchandise different from rate for costs. If the port 
director has credible information that a type of rate or combination of 
types of rates not

[[Page 234]]

applicable to payment for the merchandise was required or permitted in 
payment of costs, charges, or expenses, the currency conversions for the 
exchange covering payment for the merchandise and for the exchange 
covering such costs, charges, or expenses shall be calculated 
separately. In deducting nondutiable costs, charges, or expenses, the 
foreign exchange shall be at the rate or rates actually used in payment 
of such costs, charges, or expenses, whether or not certified in 
accordance with Sec. 159.34 or Sec. 159.35. If the costs, charges or 
expenses are dutiable, they shall be calculated according to the rules 
set forth in this subpart. In the event that any type of rate uniformly 
applicable to payment of such dutiable costs, charges, or expenses for 
merchandise of the class involved was a type of rate not certified in 
accordance with Sec. 159.34 or Sec. 159.35, the port director shall 
immediately submit a detailed report to the Commissioner of Customs, and 
shall suspend appraisement and liquidation as to all merchandise of the 
class involved exported to the United States during the period involved, 
until instructions are received from the Commissioner.



Sec. 159.37  Suspension of certification of rates.

    Whenever the Federal Reserve Bank of New York advises that its 
certification of rates for a currency is being suspended pending 
determination of the question whether it will certify multiple rates for 
that currency, the following procedures shall apply:
    (a) Notification of suspension. Customs field officers will be 
informed when certification of a currency is being suspended. Currency 
information received from the Federal Reserve Bank, or otherwise 
available, which might be helpful in calculating estimated duties during 
the period of suspension will be furnished to the Customs field 
officers.
    (b) Suspension of liquidation. In any case where for the purposes of 
the assessment and collection of duties it is necessary to determine the 
proper rate or rates for a currency during the period when it has been 
suspended from certification, appraisement and liquidation shall be 
suspended until resumption of certification.
    (c) Resumption of certification. When certification is resumed by 
the Federal Reserve Bank, the procedures in Sec. 159.36 shall apply.



Sec. 159.38  Rates for estimated duties.

    For purposes of calculating estimated duties, the port director 
shall use the rate or rates appearing to be applicable under the 
instructions in this subpart to the merchandise involved. When it is not 
yet known what certified rate or rates are applicable or no rate has 
been certified, the port director shall take into account all the 
information in his possession and shall use the highest rate or 
combination of rates (i.e., the rate or combination of rates showing the 
highest amount of United States money), certified or uncertified as the 
case may be, which could be applicable.



                        Subpart D_Special Duties



Sec. 159.41  Antidumping duties.

    Antidumping duties shall be assessed in accordance with part 353, 
chapter III of this title.

[T.D. 80-271, 45 FR 75641, Nov. 17, 1980]



Sec. 159.42  Discriminating duties.

    The discriminating duties provided for in subsection 1 of paragraph 
J, section IV, Tariff Act of 1913, as amended by the Act of March 4, 
1915 (19 U.S.C. 128, 131), and the discriminating duties and penalties 
provided for in section 338, Tariff Act of 1930 (19 U.S.C. 1338), shall 
be imposed only in pursuance of specific instructions from the 
Commissioner of Customs.



Sec. 159.43  Duties contingent upon foreign export duties, charges, or 
restrictions.

    U.S. Note 1 to Section X, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), provides for the imposition under certain 
conditions of additional duties on merchandise covered thereby. The 
assessment of these additional duties is dependent upon action

[[Page 235]]

by the President, and notice of such action, if taken, will be published 
in the Customs Bulletin.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988; T.D. 97-82, 62 FR 51771, Oct. 3, 1997]



Sec. 159.44  Special duties on merchandise imported under agreements in 
restraint of trade.

    Whenever it appears that imported articles may be subject to the 
special duties provided for in section 802, Act of September 8, 1916 (15 
U.S.C. 73), the port director shall report the matter to the 
Commissioner of Customs and await instructions with respect to the 
imposition of such duties.



Sec. 159.45  Additional duty for unauthentic claims of antiquity.

    When additional duty is imposed in accordance with Sec. 10.53 of 
this chapter for an unauthentic claim of antiquity, such duty shall be 
assessed in addition to any other duty imposed on the merchandise by 
law.



Sec. 159.46  Marking duties.

    (a) Based on dutiable value. The marking duty prescribed by section 
304(f), Tariff Act of 1930, as amended (19 U.S.C. 1304(f)), shall be 
assessed upon the dutiable value as defined in section 503, Tariff Act 
of 1930, as amended (19 U.S.C. 1503).
    (b) Suspension of liquidation. The liquidation of entries shall not 
be suspended merely because the merchandise covered thereby is not 
legally marked, but, upon special application by the importer, the 
liquidation may be deferred for a reasonable time to permit the marking, 
destruction, or exportation of the merchandise.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 90-51, 55 FR 
28191, July 10, 1990]



Sec. 159.47  Countervailing duties.

    Countervailing duties shall be assessed in accordance with part 353, 
chapter III, of this title.

[T.D. 80-271, 45 FR 75641, Nov. 17, 1980]



                   Subpart E_Suspension of Liquidation



Sec. 159.51  General.

    Liquidation of entries shall be suspended only when provided by law 
or regulation, or when directed by the Commissioner of Customs. 
Liquidation of entries shall not be suspended simply because issues 
involved therein may be before the Customs Court in pending litigation, 
since the importer may seek relief by protesting the entries after 
liquidation.



Sec. 159.52  Warehouse entry not liquidated until final withdrawal.

    Liquidation of a warehouse or rewarehouse entry shall be suspended 
until all merchandise covered by the entry has been accounted for within 
the bonded period by withdrawal, abandonment, or destruction, or until 
the bonded period has expired if the merchandise has not been so 
accounted for before that time.



Sec. 159.53  Proof of duty-free or reduced-duty status.

    Various provisions in part 10 of this chapter provide for suspending 
liquidation of entries covering certain merchandise entered at a 
conditionally free or conditionally reduced rate of duty, pending 
production of required proof. Upon production of the required proof, or 
upon failure to produce the proof within the required time, the entries 
shall be liquidated accordingly.



Sec. 159.54  Open bonds for production of documents.

    The liquidation of entries on which bonds are open for the 
production of documents affecting the rate of duty shall be suspended 
pending the performance or nonperformance under the bond, unless 
production of the document is waived in accordance with Sec. 141.92 of 
this chapter.



Sec. 159.55  Possible prohibited food, drugs, or other articles.

    (a) Suspension of liquidation. The liquidation of each entry 
covering merchandise the subject of Sec. 12.1 of this chapter (which 
pertains to certain foods, drugs, cosmetics, economic poisons, hazardous 
substances, dangerous

[[Page 236]]

caustic or corrosive substances, and related items) shall be suspended 
until it is determined whether admission of the merchandise into the 
United States is permitted under the law.
    (b) Allowance for exportation or destruction. In any case where the 
admission of such merchandise into the United States is refused and the 
merchandise is exported under Customs supervision in accordance with 
Sec. 158.45(b) of this chapter, or destroyed under Customs supervision 
in accordance with Sec. 158.41 of this chapter, the merchandise is 
exempt from duty and any duties collected thereon shall be refunded.



Sec. 159.57  Merchandise affected by an American manufacturer's cause 
of action sustained by the court.

    Liquidation of entries for merchandise of the character covered by a 
decision of the Secretary of the Treasury published in accordance with 
Sec. 175.24 of this chapter, entered or withdrawn for consumption after 
the date of publication of a decision of the U.S. Court of International 
Trade sustaining in whole or in part the cause of action of an American 
manufacturer, producer, or wholesaler, shall be suspended until final 
disposition is made of the cause of action. Upon final disposition, such 
entries shall be liquidated, or, if necessary, reliquidated in 
accordance with the final judicial decision.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 85-90, 50 FR 
21430, May 24, 1985]



Sec. 159.58  Dumping and countervailing duties; action by port director.

    (a) Antidumping matters. Upon receipt of notification from the 
Commissioner, each port director shall suspend liquidation on 
merchandise entered, or withdrawn from warehouse, for consumption, on or 
after the date of publication of the ``Notice of Preliminary Affirmative 
Antidumping Determination,'' ``Notice of Final Affirmative Antidumping 
Determination'' or ``Notice of Violation of Agreement'' as provided by 
part 353, chapter III, of this title. Each port director shall 
immediately notify the importer, consignee, or agent of each entry of 
merchandise in question with respect to which liquidation is suspended. 
The notice shall indicate the relevant ascertained and determined or 
estimated antidumping duty.
    (b) Countervailing matters. Upon receipt of notification from the 
Commissioner, each port director shall suspend liquidation on 
merchandise entered, or withdrawn from warehouse, for consumption, on or 
after the date of publication of the ``Notice of Preliminary Affirmative 
Countervailing Duty Determination,'' ``Notice of Final Affirmative 
Countervailing Duty Determination'' or ``Notice of Violation of 
Agreement,'' as provided by part 355, Chapter III, of this title. Each 
port director shall immediately notify the importer, consignee, or agent 
of each entry of merchandise in question with respect to which 
liquidation is suspended. The notice shall indicate the relevant 
ascertained and determined or estimated countervailing duty.

[T.D. 80-271, 45 FR 75642, Nov. 17, 1980]



             Subpart F_Continued Dumping and Subsidy Offset

    Source: T.D. 01-68, 66 FR 48552, Sept. 21, 2001, unless otherwise 
noted.



Sec. 159.61  General.

    (a) Continued dumping and subsidy offset. Under section 754 of the 
Tariff Act of 1930, as amended by Public Law 106-387, 114 Stat. 1549 (19 
U.S.C. 1675c), known as the Continued Dumping and Subsidy Offset Act of 
2000, assessed duties received on or after October 1, 2000 under a 
countervailing duty order, an antidumping duty order, or a finding under 
the Antidumping Act of 1921, will be distributed, as provided under this 
subpart, to affected domestic producers for certain qualifying 
expenditures that these affected domestic producers incur after the 
issuance of such an antidumping duty order or finding, or countervailing 
duty order. This distribution is called the continued dumping and 
subsidy offset.
    (b) Affected domestic producer--(1) General rule. Except as provided 
in paragraph (b)(2) of this section, an ``affected domestic producer'' 
under paragraph (a) of this section means any manufacturer, producer, 
farmer, rancher or worker representative (including

[[Page 237]]

any association of such persons) that remains in operation continuing to 
produce the product covered by the antidumping duty order or finding or 
countervailing duty order, and that was a petitioner or an interested 
party that supported a petition concerning an antidumping duty order, a 
finding under the Antidumping Act of 1921, or a countervailing duty 
order that was entered. It is the responsibility of the U.S. 
International Trade Commission (USITC) to ascertain and timely forward 
to Customs a list of the domestic producers potentially considered 
``affected domestic producers'' eligible to receive a distribution in 
connection with each order or finding. In addition to the potential 
``affected domestic producers'' set forth on the USITC list, the 
following parties also are potential ``affected domestic producers'':
    (i) Successor company. In the case of a company that has succeeded 
to the operations of a predecessor company that appeared on the USITC 
list, the successor company may file a certification to claim an offset 
as an affected domestic producer on behalf of the predecessor company. 
In its certification, the company must name the predecessor company to 
which it has succeeded and it must describe in detail the duly 
authorized succession by which it is entitled to file the certification.
    (ii) A member company of an association. A member company of an 
association appearing on the USITC list for an order or finding may file 
a certification to claim an offset as an affected domestic producer, 
even though the member company does not itself appear on the USITC list, 
provided that the company also meets the other requirements of the 
statute. In its certification, the company must name the association of 
which it is a member and the company must specifically establish that it 
was a member of the association at the time the association filed the 
petition with the USITC.
    (2) Exceptions. A party who is named on the USITC list is not an 
``affected domestic producer'' under the following circumstances:
    (i) Product no longer produced. A company, business or person that 
has ceased production of the product covered by the antidumping duty 
order or finding, or countervailing duty order, i.e., did not 
manufacture that product at all during the fiscal year that is the 
subject of the disbursement, is not an affected domestic producer under 
this section.
    (ii) Acquisition by related company--(A) Related company defined. A 
company, business or person is not an affected domestic producer if that 
company, business, or person has been acquired by another company or 
business that is related to a company that opposed the antidumping or 
countervailing duty investigation that led to the order or finding. For 
purposes of this paragraph, a company, business or person is related to 
another company, business or person if:
    (1) The company, business or person directly or indirectly controls 
or is controlled by the other company, business or person;
    (2) A third party directly or indirectly controls both companies, 
businesses or persons; or
    (3) Both companies, businesses or persons directly or indirectly 
control a third party and there is reason to believe that the 
relationship causes the first company, business or person to act 
differently than a nonrelated party.
    (B) Control of one party by another. For purposes of paragraphs 
(b)(2)(ii)(A)(1) through (b)(2)(ii)(A)(3) of this section, one party 
would be considered to directly or indirectly control another party if 
the party was legally or operationally in a position to exercise 
restraint or direction over the other party.
    (c) Qualifying expenditures. Qualifying expenditures which may be 
offset by a distribution of assessed antidumping and countervailing 
duties must fall within the categories described in paragraphs (c)(1) 
through (c)(10) of this section. These expenditures must be incurred 
after the issuance, and prior to the termination, of the antidumping 
duty order or finding or countervailing duty order under which the 
distribution is sought. Further, these expenditures must be related to 
the production of the same product that is the subject of the related 
order or finding, with the

[[Page 238]]

exception of expenses incurred by associations which must relate to a 
specific case.
    (1) Manufacturing facilities;
    (2) Equipment;
    (3) Research and development;
    (4) Personnel training;
    (5) Acquisition of technology;
    (6) Health care benefits for employees paid for by the employer;
    (7) Pension benefits for employees paid for by the employer;
    (8) Environmental equipment, training, or technology;
    (9) Acquisition of raw materials and other inputs; and
    (10) Working capital or other funds needed to maintain production.



Sec. 159.62  Notice of distribution.

    (a) Publication of notice. At least 90 days before the end of a 
fiscal year, Customs will publish in the Federal Register a notice of 
intention to distribute assessed duties received as the continued 
dumping and subsidy offset for that fiscal year. The notice will include 
the list of domestic producers, based upon the list supplied by the 
USITC (see Sec. 159.61(b)(1)), that would be potentially eligible to 
receive the distribution.
    (b) Content of notice. The notice of intention to distribute the 
offset will also contain the following:
    (1) The case name and number of the particular order or finding 
concerned, together with the dollar amount contained in the special 
account for that order or finding as of June 1 of the subject fiscal 
year (see Sec. 159.64(a)(1)); and
    (2) The instructions for filing the certification under Sec. 159.63 
in order to claim a distribution.



Sec. 159.63  Certifications.

    (a) Requirement and purpose for certification. In order to obtain a 
distribution of the offset, each affected domestic producer must submit 
a certification, in triplicate, or electronically as authorized by 
Customs, to the Assistant Commissioner, Office of Regulations and 
Rulings, Headquarters, or designee, that must be received within 60 days 
after the date of publication of the notice in the Federal Register, 
indicating that the affected domestic producer desires to receive a 
distribution. The certification must enumerate the qualifying 
expenditures incurred by the domestic producer since the issuance of an 
order or finding for which a distribution has not previously been made, 
and it must demonstrate that the domestic producer is eligible to 
receive a distribution as an affected domestic producer.
    (b) Content of certification. While there is no established format 
for a certification, the certification must identify the date of the 
Federal Register notice under which it is submitted, and the case name 
and the number of the particular order or finding cited in the Federal 
Register notice. The certification must be executed and dated by a party 
legally authorized to bind the domestic producer. The certification must 
also state that the information contained in the certification is true 
and accurate to the best of the certifier's knowledge and belief under 
penalty of law, and that the domestic producer has records to support 
the qualifying expenditures being claimed.
    (1) Identifying information for domestic producer. The certification 
must include the following identifying information related to the 
domestic producer:
    (i) The name of the domestic producer and any name qualifier, if 
applicable (for example, any other name under which the domestic 
producer does business or is also known);
    (ii) The address of the domestic producer (if a post office box, the 
secondary street address must also be included);
    (iii) The Internal Revenue Service (IRS) number (with suffix) of the 
domestic producer, employer identification number, or social security 
number, as applicable;
    (iv) The specific business organization of the domestic producer 
(corporation, partnership, sole proprietorship); and
    (v) The name(s) of any individual(s) designated by the domestic 
producer as the contact person(s) concerning the certification, together 
with the phone number(s) and/or facsimile transmission number(s) and 
electronic mail (email) address(es) for the person(s).
    (2) Amount of claim. In calculating the amount of the distribution 
being

[[Page 239]]

claimed as an offset, the certification must enumerate the following:
    (i) The total amount of qualifying expenditures currently and 
previously certified by the domestic producer, and the amount certified 
by category(see Sec. 159.61(c)(1) through (c)(10));
    (ii) The total amount of those expenditures which have been the 
subject of any prior distribution under section 754, Tariff Act of 1930, 
as amended (19 U.S.C. 1675c); and
    (iii) The net amount for new and remaining qualifying expenditures 
being claimed in the current certification (the total amount currently 
and previously certified as noted in paragraph (b)(2)(i) of this section 
minus the total amount the subject of any prior distribution as noted in 
paragraph (b)(2)(ii) of this section).
    (3) Statement of eligibility to receive distribution. The 
certification must contain a statement that the domestic producer 
desires to receive a distribution and is eligible to receive the 
distribution as an affected domestic producer (see Sec. 159.61(b)(1) 
and (b)(2)).
    (i) Amount certified for payment. The affected domestic producer 
must affirm that the net amount certified for distribution does not 
encompass any qualifying expenditures for which distribution has 
previously been made (see paragraphs (b)(2)(ii) and (b)(2)(iii) of this 
section).
    (ii) Same qualifying expenditures included on more than one 
certification. Where the domestic producer is listed as an affected 
domestic producer on more than one order or finding covering the same 
product and files a separate certification for each order or finding 
using the same qualifying expenditures as the basis for distribution in 
each case, each certification must list all the other orders or findings 
where the producer is claiming the same qualifying expenditures.
    (iii) Continued production of product covered by order or finding; 
acquisition by related company. The statement must include information 
as to whether the domestic producer remains in operation and continues 
to produce the product covered by the particular order or finding under 
which the distribution is sought (see Sec. 159.61(b)(2)(i)). In 
addition, the domestic producer must state whether it has been acquired 
by a company or business that is related to a company, within the 
meaning of Sec. 159.61(b)(2)(ii)(A)(1) through (3), that opposed the 
antidumping or countervailing duty investigation that resulted in the 
order or finding under which the distribution is sought.
    (c) Review and correction of certification. A certification that is 
submitted in response to a notice of distribution and received within 60 
days after the date of publication of the notice in the Federal Register 
may be reviewed before acceptance to ensure that all informational 
requirements are complied with and that any amounts set forth in the 
certification for current and prior qualifying expenditures, including 
the amount claimed for distribution, appear to be correct (see paragraph 
(b)(2) of this section). A certification that is found to be materially 
incorrect or incomplete will be returned to the domestic producer within 
15 days after the close of the 60-day filing period. Within 10 days of 
the date that Customs returns a certification as being materially 
incorrect or incomplete, Customs must receive a corrected certification 
from the affected domestic producer. Customs will make every effort to 
assist companies to perfect their certifications and will not return 
claims for minor errors or omissions. However, it remains the sole 
responsibility of the domestic producer to ensure that the certification 
is correct, complete and satisfactory so as to demonstrate the 
entitlement of the domestic producer to the distribution requested. 
Failure to ensure that the certification is correct, complete and 
satisfactory as provided in this paragraph will result in the domestic 
producer not receiving a distribution.
    (d) Verification of certification; supporting records. 
Certifications are subject to verification. Parties, therefore, are 
required to maintain the accounting records used in developing their 
claims, for a period of five years after the filing of the 
certification. The records supporting certifications must be those that 
are normally kept in the ordinary course of business (see Sec. 
163.1(a)(1) and (a)(2)(vi) of this chapter). Parties must be able to 
demonstrate that their records specifically

[[Page 240]]

support each qualifying expenditure enumerated in a certification. In 
addition, the claimant must be able to support how qualifying 
expenditures are determined to be related to the production of the 
product covered by the order or finding.
    (e) Disclosure of information in certifications; acceptance by 
producer. The name of the affected domestic producer, the total dollar 
amount claimed by that party on the certification, as well as the total 
dollar amount that Customs actually disburses to that company as an 
offset, will be available for disclosure to the public (see Sec. 
159.64(g)(1)). The submission of the certification will be construed as 
an understanding and acceptance on the part of the domestic producer 
that this information will be disclosed to the public. Alternatively, a 
statement in a certification that this information is proprietary and 
exempt from disclosure will result in Customs rejection of the 
certification.



Sec. 159.64  Distribution of offset.

    (a) The creation of Special Accounts and Clearing Accounts--(1) 
Special Accounts. As directed in the legislation (19 U.S.C. 1675c(e)), 
Customs will establish Special Accounts for each antidumping duty order 
or finding or countervailing duty order, into which funds will be 
transferred as set out in paragraph (b) of this section. All 
distributions to affected domestic producers will be made from the 
Special Accounts.
    (2) Clearing Accounts. In order to properly manage and account for 
dumping and subsidy offsets, as well as any requisite refunds to 
importers, Customs will also establish Clearing Accounts. All estimated 
antidumping and countervailing duties received pursuant to an 
antidumping or countervailing order or finding in effect on January 1, 
1999, or thereafter, will be deposited into a Clearing Account.
    (b) Distribution of assessed duties received from the Special 
Accounts; refunds resulting from reliquidation or court action; and 
overpayments to affected domestic producers.
    (1) Distribution of assessed duties received from the Special 
Accounts.
    (i) No later than 60 days after the end of a fiscal year, Customs 
will distribute the assessed duties transferred from the Clearing 
Accounts and received into the Special Accounts. The amount distributed 
shall be referred to as the dumping and subsidy offset;
    (ii) Transfers from the Clearing Accounts to the Special Accounts 
will be made by Customs throughout the fiscal year. Transfers will occur 
between a Clearing Account and a Special Fund Account when an entry upon 
which antidumping or countervailing duties are owed is properly 
liquidated pursuant to an order, finding or receipt of liquidation 
instructions;
    (iii) The amount transferred at liquidation to the Special Account 
will be dependent upon the amount actually collected on the entry and in 
the Clearing Account. Following liquidation, additional transfers will 
be made on the liquidated entry to the corresponding Special Account, as 
additional antidumping or countervailing duties are collected.
    (2) Refunds resulting from reliquidation or court action. If any of 
the underlying entries composing a prior distribution should reliquidate 
for a refund, such refund will be recovered from the corresponding 
Special Account. Similarly, refunds to importers resulting from any 
court action involving those entries will also be recovered from the 
corresponding Special Account. Refunds to importers will not be delayed 
pending the recovery of overpayments from domestic producers as set out 
in paragraph (b)(3) of this section.
    (3) Overpayments to affected domestic producers. Overpayments to 
affected domestic producers resulting from subsequent reliquidations 
and/or court actions and determined by Customs to be not otherwise 
recoverable from the corresponding Special Account as set out in 
paragraph (b)(2) of this section will be collected from the affected 
domestic producers. The amount of each affected domestic producer's bill 
will be directly proportional to the total dumping and subsidy offset 
amounts that the affected domestic producer previously received under 
the related Special Account. All available collection methods will be 
used by Customs to collect outstanding bills, including but

[[Page 241]]

not limited to, administrative offset. Interest at the same rate set out 
at Sec. 24.3a(c) of this chapter will begin to accrue on unpaid bills 
30 days from the bill date.
    (c) Payment of certified claims. (1) If the total amount of the 
certified net claims filed by affected domestic producers does not 
exceed the amount of the offset available for distribution in the 
corresponding Special Account, the certified net claim for each affected 
domestic producer will be paid in full.
    (2) If the certified net claims exceed the dumping and subsidy 
offset amount available in the corresponding Special Account, such 
offset will be made on a pro rata basis based on each affected domestic 
producer's total certified claim.
    (3) In any case where the distribution is not for the entire 
certified qualifying expenditure su